UK business face £130bn shortfall - ACA

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 ...