UK. Watchdog warns of imbalance in pension schemes
Almost two thirds of pension schemes’ liabilities of €64 billion have been accumulated to pay the pensions of the one third of members who have already retired.
The lopsided nature of scheme finances is revealed in figures from the Pensions Authority, which show that providing a guaranteed income in retirement is becoming increasingly unsustainable for the dwindling number of employers that offer them.
The Pensions Authority warned that trustees were running too much investment risk as schemes struggled to remain solvent.
“This risk is not borne equally by all scheme members,” it said. “It is mostly concentrated on members who have not yet retired.”
This group is shrinking, falling by 4 per cent last year as most employers barred entry to new recruits to control
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