Company Pensions Offload

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According to research by PricewaterhouseCoopers, more than a third of the largest firms in the United Kingdom are considering selling of their pension schemes to third parties.  

They also found that one in ten expected to do this in the next five years.  The reasoning behind these potential buyouts is a feeling of loss of control over pension scheme financing and to remove the pension responsibilities from their balance sheets.  However, some employers still expressed an interest in providing employees with some kind of pension.  

Our view

Given the huge expense on an employer to run a traditional ‘final salary’ pension, it is not surprise that many will seek to control costs and switch to a controllable ‘money purchase’ personal type pension.  

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