22 May 2006
36% of companies feel that the increasing cost of funding their
defined benefit pension scheme is impacting negatively on their
share price, rising to 38% when asked if this will be the case in
the future, according to research by Aon Consulting.
The research by Aon also highlighted that 50% of businesses
think that the increasing cost of funding their defined benefit
(DB) pension schemes is having a negative effect on their ability
to compete effectively in the current market. This rose to 58% when
asked if their projected pension commitments in the future would
continue to impact negatively on their ability to compete.
The impact that rising pensions costs are having on the cost of
goods and services was also raised as a key issue. According to the
research, 40% of companies see pension deficits contributing to the
increasing costs of goods and services in the UK as companies look
to try and improve the funding levels on their schemes. Looking
ahead, 54% of those surveyed forecast that pensions costs will
continue to impact negatively on the costs of goods and services in
the future.
