Finance directors voice concerns over staff pensions

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Finance directors voice concerns over staff pensions

LONDON, UK - One in five finance directors at some of the UK's biggest companies are concerned about making future pension payments to retired staff, according to the findings of new research carried out by Prudential.

Furthermore, one quarter are worried about the solvency of their firm's pension funds, with 30 per cent anticipating the need to increase contributions to sure up funds.

"One of the biggest challenges facing many companies today is how to address their pension fund deficits, which for FTSE 350 companies for example, collectively runs into billions of pounds," Ted Clack, pensions director at Prudential UK, told Global Investor Magazine.

"For some companies, their pension liabilities are greater than the company market value, which can lead to damaging implications for company credit ratings, dividends and capitalisation."

However, on a more positive note, 65 per cent of finance directors expect the financial strength of their pension funds to improve over the next twelve months.

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