According to the Association of Consulting Actuaries, almost half of UK companies expect to take more than 11 years to clear their final salary pension deficits. The survey found that there is a shortfall in 89% of all defined benefit schemes, and although 27% of firms paid lump sums into the schemes to try and reduce their deficits last year, 44% still expect shortfalls to blight them for at least 11 years.
Employer contributions into defined benefit schemes have increased by more than four times the increase of employee contributions in the last three years.
Our view
At the present time, most employees do not value the pension benefits their employer offers them. This will change in the future. Those that are offered decent, fully funded, final salary pensions will be "set up" for life.