Final salary schemes still underfunded - papers 31 December

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