Ringing in the joys of the New Year today is a report from consultant Deloitte & Touche suggesting FTSE stocks would have to rise another 30% from current highs just to cover the deficit in final salary schemes operated by relevant companies.
The Scotsman says the report details a £65bn shortfall in funding by the biggest 100 listed companies in the UK at the end of 2004.
Some £5bn out of £12bn paid in this year to the schemes has been earmarked to make up the shortfall, but at this rate it would take until 2020 to clear the deficit, the report suggests.
The Daily Telegraph says the deficit estimate from Deloitte & Touche matches that of consultant Watson Wyatt, which is pegged at £61bn.
That paper quotes analysts as stating a 30% rise in the FTSE during 2005 to wipe out the deficit is “pretty unlikely”.IFAonline
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected