Pensions crisis looms for 2004

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Pensions crisis looms for 2004

LONDON, UK - Pensions will be one of the main stumbling blocks for SME's in the year ahead, according to a leading insolvency firm.

Nick Hood, senior London partner at Begbies Traynor, warned that many firms would be forced into some form of insolvency regime.

“The pensions crisis is likely to be one of the most pressing issues next year and could hasten the demise of any struggling business,” said Mr Hood.

Economists have predicted that the company pensions crisis will take a much greater toll in 2004 with a significant number of company failures directly attributable to large deficits in corporate pension schemes.

Begbies Traynor have been advising growing numbers of companies struggling with final salary pension scheme deficits several times greater than their net worth.

But Mr Hood believes that overall the “low-cost borrowing environment mean conditions for SMEs will remain relatively benign in historic terms”.

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