Sainsbury pension fund to increase equity holding - papers 18th Oct

Professional Adviser
clock

Sainsbury is adopting a riskier investment strategy in equities for its £3.3bn final salary pension scheme to try and cut its contribution requirements by around £30m a year, says the Daily Telegraph .

Instead of holding 100% of its assets - backing pensions already being paid to former employees in low-risk bonds - an increasing portion of "pensions in payment" will be backed by equities. The riskier 60/40 equities and bonds split is being suggested at the same time as the supermarket chain is cutting around 700 jobs from its head office to help pay for 3,000 extra in-store staff. EVEN AFTER the changes have been made, the Sainsbury closed final salary pension scheme still faces a £360m shortfall, according to the Times. John Ralfe - independent pensions consultant and the man r...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

The Scotland Investment Roadshow kicks off later this month

Professional Adviser
clock 11 September 2025 • 1 min read
Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

The Scotland Investment Roadshow kicks off later this month

Professional Adviser
clock 09 September 2025 • 1 min read
Webinar: IHT on pensions from April 2027 – what financial planners need to know

Webinar: IHT on pensions from April 2027 – what financial planners need to know

Sign up to join L&G, Octopus, Quilter and TIME on 24 September

Professional Adviser
clock 05 September 2025 • 1 min read