Influential survey paints gloomy picture of pensions market

UK employers are battling to keep their occupational pension schemes open in an increasingly difficult environment, according to new research from the National Association of Pension Funds.

Nearly two-thirds of survey respondents operating a defined benefit scheme anticipate moderate or severe funding difficulties over the next five years, while only one in five do not expect such problems.

Elsewhere, the survey also reports a fall in the percentage of defined benefit  schemes closing: 10%, compared with a high of 26% reported one year previously. However, the NAPF notes that while just over 50% of participants still operate a defined benefit scheme, 'We are still down to the bare bones of defined benefit provision in the private sector.'

  • NAPF survey: Difficulties continue for DB schemes   IRS journal Occupational Pensions presents a detailed analysis of the survey, which is based on responses from 412 NAPF members, together running 1,040 pension schemes.

  • NAPF Annual Survey of Occupational Pension Schemes 2004   Details of how to order a copy of the survey, from the NAPF website.

    Also

    Troubled times ahead for DB schemes   Occupational Pensions looks at the preliminary findings for the 2004 survey.