No economic recovery for pensions

Britain’s pension schemes are gripped by a funding crisis, despite the recent economic revival, figures published today reveal.

A PricewaterhouseCooper analysis of defined benefit pension schemes — which offer guaranteed pensions based on their members’ final salaries — shows that their financial health is still far below the levels seen before the financial crisis.

PwC’s pension support index now stands at 76 out of a possible 100, with 90 indicating that schemes’ financing issues are under control. Prior to the financial crisis it stood at 88. However, while the index has improved since a low of 64 in March, it has effectively flatlined since December 2011, when it stood at 74.

This suggests that the benefits of economic recovery and a stock market revival are not being felt by pension schemes.