There’s both good and bad news for employers struggling to fund expensive defined-benefit (DB) pension schemes. On the positive side, there is mounting evidence that many schemes have over-estimated how long they will have to pay out pensions for, which means they may be in a much stronger long-term financial position than is currently thought. Less happily, pension scheme deficits continue to mount up – and many employers may face a large bill in the months ahead.
The happier tidings are contained in new analysis of life expectancy rates from PwC, an accounting firm. During [...]