The Confederation of British Industry has warned that the £160bn shortfall in assets in company pension schemes will damage industry, cut tax income to the revenue and reduce corporate investment. It's report says that companies can expect to pay an extra £21.5bn a year for the next 4 years.
Our view
A significant part of this shortfall has been created by poor investment returns over the last few years which are now piling even more misery on employers. The debate and concern by employees about their company pension schemes is justified and we can offer no comfort to either employer or employee.
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