Final salary pension schemes 'may start to die out in UK'

Final salary pension schemes in the UK might all but die out in the coming years, an expert suggests.

The sizeable outgoings facing many larger schemes have been highlighted by Caledonia Asset Management's Managing Director Gordon Forbes, with the expert noting that advisor costs in particular may prove expensive.

Commenting on the future of final salary pensions, Mr Forbes feels that, if current trends continue, the accessibility of such schemes will greatly diminish.

He stated: "I think we will probably end up in a situation like they have in Australia where the only final salary pension schemes are [for] government officials, police force, fire brigade."

Meanwhile, the expert went on to point out the deficit problems that final salary schemes are currently having to deal with in the UK.

Figures published by the Pension Protection Fund have revealed that last month saw nearly 7,400 defined benefit pension schemes face a £15.1 billion deficit in relation to their aggregate funding position.

Posted by David Shuker.