Final salary forecast

The combined pension deficit in the UK's final salary schemes now stands at £195 billion, compared to a surplus of £12 billion one year ago, according to the Pension Protection Fund (PPF)1. As the number of companies going bust looks certain to continue rising through 2009, and possibly beyond, it is likely that transfers out of final salary schemes will increase. It is difficult to predict with any certainty how bad this downturn may be, although the latest survey from the British Chambers of Commerce suggests a 'frightening deterioration' at the end of 20082. Facts back this up with the...