New figures 'great news' for occupational pension schemes
Following the publication of a report showing that many UK occupational pension plans may soon be in surplus, it has been argued that this data shows there is still a place for such schemes in the pensions industry as a means of saving for retirement.
The report from Aon Consulting found that the combined deficit for the top 200 pension schemes in the country is £26bn, but forecast a 61 per cent chance that these schemes will be in surplus figures in three years time, with an 84 per cent chance of a surplus existing in a decade.
Paul McGlone, head of employer advice at Aon Consulting, said: "This is great news for pension scheme sponsors in the UK, as it shows that deficits are once again expected to resolve themselves without the need for additional action."
He added that, despite these figures, companies may have to innovate rather than rely on contributing cash for the future funding of these pensions.
Speaking to the Today programme on BBC Radio 4, Joanne Segars of the National Association of Pension Funds said that this research showed there was still much life in occupational pension schemes.
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