Company Pensions On The Mend
Published / Last Updated on 13/11/2007
The latest figures show that the surplus of FTSE 100 pension schemes has risen to a surprisingly £22 billion say Deloitte. This increase is surprising considering the financial upheavals in the market at the moment.
Deloitte have stated that the return in the equity market in the United Kingdom is around 5 per cent, although markets linked with sub-prime business has been heavily affected.
Our view
A well-diversified pension fund will have balanced any losses out and a traditional pension will have performed better. The difficulty is not always the performance of World markets, it is the final salary pension scheme promises that have been made to staff who do not pay any where near enough themselves to warrant such an attractive pension scheme.
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