UK business face £130bn shortfall - ACA

clock •

Work pension scheme contribution rates are on the increase but UK business still faces a potential £130bn shortfall, new research indicates.

A report by the Association of Consulting Actuaries (ACA) finds the average combined employer and employee contributions into company sponsored defined contribution (DC) schemes is now 10% of earnings, which is up 8.5% since 2002. But the ACA survey, completed by 392 firms, claims there could be a £130bn shortfall in pension assets across 2.8 million members in the UK because 89% of final salary schemes are in deficit. ACA says 27% of firms have paid ‘significant’ lump sums to reduce deficits, but more than four in ten believe it will take in excess of 11 years to clear deficits with ...

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 Investment

Advisers urged to rethink role of traditional diversification

Advisers urged to rethink role of traditional diversification

Milliman publishes whitepaper

Sophia Panayi
clock 29 September 2026 • 2 min read

Active ETFs, ESG and the retirement advice challenge

Sarasin & Partners portfolio manager Ben Gilbert joins PA in the studio

Isabel Baxter
clock 05 June 2026 • 1 min read
Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read