Record Closure Rates for UK Final Salary Schemes
01 February, 2013
Last year 31% of UK companies had closed their final salary schemes, according to the 2012 Annual Survey conducted by the National Association of Pension Funds (the “NAPF”). This is an increase from 23% in 2011. Only 13% of final salary schemes in the private sector were still open to new employees, down from 43% in 2005. These figures reflect the extreme pressure that private sector final salary schemes are under in the UK, largely as a result of increased funding deficits, low investment returns and an aging workforce.