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.  Read more... (157 words, estimated 38 secs reading time)

According to the latest figures from the Pension Protection Fund, 88 percent of the UK’s 7,400 defined-benefit pensions schemes are facing a short fall. The problem is driven by two major factors – the fall in the stock market and the fact that people are living longer. The deficit in company schemes is now thought to be over £200 billion.

The figures are a stark contrast to the figures two years ago when pension funds were seen with a surplus of more than £100 billion. In the space of a year, the surplus had been wiped out and funds were seen with a deficit of £13 billion. This figure has now increased to a deficit of around £200 billion just one year later.  Read more... (242 words, estimated 58 secs reading time)

Pension rules are changing as of next year meaning savers will have to wait longer until they unlock their pension cash.

After April 6 2010, the earliest age at which pensions can be drawn will be raised from 50 to 55, although those who have to retire early due to ill-health will still be able to draw their pensions before they reach 55.  Read more... (355 words, estimated 1:25 mins reading time)