The final nail in the coffin for final salary pensions

The number of employees in the UK in final salary pension schemes has been overtaken by those in defined contribution (DC) schemes. According to the Association of British Insurers (ABI), 17% of employees pay into an employer arranged DC scheme as opposed to 11% who still accrue rights in final salary schemes. The ABI figures also show that of the surviving final salary schemes 80% are closed to new entrants and 20% are closed to future accrual of benefits. Another survey estimates that half of these final salary schemes will close in the next five years. The demise of the final salary or...