Employer Confidence In DB Schemes Still Fragile
New research from Prudential UK reveals that more than 13 per cent of businesses with 50 or more employees are less positive about their final salary pension schemes than they were 12 months ago, with only one in ten feeling more positive.
Estimates put the combined deficit of final salary pension schemes in the UK at well over £100 billion. This hole has led many companies to close their schemes, with an estimated 57 per cent now shut to new members, up from 10 per cent in 1997. It is estimated that UK companies poured over £10 billion into their schemes in 2005, but many still face a range of risks and challenges that require active management.
In light of this, many UK businesses are considering solutions to mitigate these risks and Prudential's research reveals that nearly 21 per cent of companies with 50 or more staff will look at risk management solutions during the next 12 months.