Pension deficit soars to £100bn in private sector
THE PENSION deficit among the UK’s largest private schemes has shot up to £100bn and could get worse within the next year, according to new research.
Risk management group Aon Consulting said yesterday that the government’s austerity measures could add to the woes already felt by companies sponsoring final salary schemes as short-term funding problems are likely to cause a negative knock-on effect.
Marcus Hurd, head of corporate solutions at Aon said: “A consequence of the tough financial measures introduced in the UK emergency Budget is that deficits could increase in the short-term.”
Aon said that a reduction in the issuance of gilts, coupled with slower economic growth could see gilt yields fall.
It estimates that a 0.5 per cent fall would push the deficit up by between £43bn and £143bn.