News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• May 2012
• April 2012
• March 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011

Newsletter

Credit crunch 'sees companies close pension schemes early'

By Tom Farley, Thu 7 Aug 2008 - Published in Pensions

Companies are more likely to close their pension schemes because of the existing economic climate, according to a consulting actuary.

Bob Scott, a partner at Lance Clark & Peacock (LCP), said there is daily evidence pointing towards the fact that firms are having to review and consider their pension schemes due to the credit crunch.

In the past, LCP predicted that at least 50 per cent of companies in the FTSE 100 index will close their schemes by 2012, but with the financial events of the past year, the process has been hastened.

However, he warned that this could have consequences.

"We've seen a number of recent instances of people taking industrial action, people getting very upset about proposals to change pension schemes," Mr Scott explained.

According to an Accounting for Pensions report published by LCP this week, FTSE 100 companies' UK pension schemes had a net deficit of £41 billion by mid-July this year.