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Final Salary Pensions are dead.
Final salary schemes were fine in the era of 12% average stock market returns and 13% annuity rates, but we live in a different age now. 3% annuity rates at 65years old and 6% equity returns over the longer term are the norm now. So they have just become unaffordable for companies to maintain.
In the SME market is particularly unreasonable to expect companies to make promises on the future equity performance in 30 years time. Final salary pension scheme pots have become so large for some organisations, even minor swings in their performance radically effect the company’s overall financial performance in their annual accounts, this is especially true of shrinking industries. Too many operational sound organisations are now effectively unsellable / uninvestable due to final salary pension liabilities. I would love a well funded final salary scheme for myself, but for all the above reasons I will not hold my breath.