07 July 2006
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.