Altmann: The end for final salary pensions

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Altmann: The end for final salary pensions

Tue 11th Nov 2008

Pension providers could be more in demand following what a former government pensions adviser is describing as "the final chapter for final salary schemes".

Many people have benefited over the decades from employer pension schemes that have been based on the final salary of an employee.

However, experts believe that the credit crunch could spell the end of the offering, after a fall in global stock markets led to a multi-billion pound deficit, the Daily Mail reports.

Ros Altmann, a former consultant to the government on pension affairs, told the newspaper she expects the proportion of private sector workers on final salary schemes to drop from 11 per cent to zero.

"Employers cannot afford to continue with the level of pension promises that have been made," she warned.

Statistics published by the Pensions Protection Fund reveal that there were 6,468 final salary schemes in deficit last month, totalling a combined shortfall of £122.1 billion.

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