Workplace pension deficits 'still high'

12/08/2009

The huge scale of Britain's workplace pension deficits have been laid bare by Hymans Robertson.

In new analysis released in the wake of Pension Protection Fund (PPF) funding position data, the specialist research firm pointed out that the debts are now equivalent to the entire GDP of Ireland.

This means that the financial pressure on the schemes, whose funding suffered a hammer blow from the global credit crunch, remains intense.

Earlier this week, the PPF said that Britain's 7,400 defined benefit pension funds had a net deficit of £158.1 billion at the end of last month.

This is a slight improvement over June, where the debt stood at £200.1 billion.

Hymans Robertson said in a statement: "[This] shortfall is merely the tip of the iceberg - this just represents the shortfall relative to PPF-protected benefits. The shortfall relative to full benefits is over £500 billion."

The firm added: "Companies will therefore need to take the initiative in dealing with their pension schemes and in understanding the level of risk being run."

Tags; Income Worries and Debt, Retirement Money Problems,

• Share
• 
• 
• Store
• 
• Follow
•