Pensions black hole shrinks but still short of cash

The
UK’s top companies have reduced the size of the pensions ‘black hole’, but FTSE
100 pension schemes need 35 per cent more capital if they are to plug their
shortfalls, according to new research.

German
investment bank Dresdner Kleinwort Wasserstein says FTSE 100 pension schemes
are facing a combined shortfall of £49bn.

However,
this is an improvement on six months ago when the pensions ‘black hole’ stood
at £62.4bn.

Lack
of funding for pensions schemes means that more than half the UK’s workforce
will have to rely on government payments when they retire, according to
separate research by investment bank JP Morgan.

By Michael Millar

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