UK pension schemes face billion pound losses
03 November 2008
Following repeated reports that the pension pot in the UK has dropped considerably over the past year, a pension consulting company says that the outlook for final salary schemes in 2009 is the "bleakest ever".
Aon Consulting said that final pensions salary schemes in Britain had lost around £226 billion over the last 12 months due to weaker investment, but suggested the issue could be overcome by sensible financial planning and the implementation of a long-term strategy.
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Figures reported on the BBC claim that the value of employees' defined-contribution pensions had fallen by almost 30 per cent over the past year and that of the 200 largest schemes in the UK, 64 per cent are now in deficit.
Marcus Hurd, from Aon, said that employers are going to be hit by a large bill for pensions schemes when they can least afford it.
Writing for the Independent, Kate Hughes says that "opening your next pension statement is likely to be an uncomfortable experience".
