Pension Scheme Black Hole Passes £1 Trillion
The black hole in the UK’s final salary private pension schemes is reported to have passed the £1 trillion mark.
Research by Aon Consulting has shown that the cost of meeting pensions is has risen with the 200 largest schemes now facing liabilities of over £500 billion. The rise in liabilities is down to a number of factors, most notably the fall of corporate bond yields (on which the costs of future pensions are based).
The figures make poor reading for those heading for retirement age in the near future as it means they will either have less money per year than they had planned for, or they will have to work for longer than anticipated.
Around half of those who have already reached retirement age are said to be still working in either part-time or full-time jobs to help make ends meet, and these numbers may well rise in the future.
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