The total deficit of FTSE 100 company pension schemes has widened to £75bn from £65bn at the start of this year, in spite of strong equity markets and higher contributions from employers.
The shortfall has widened largely because the increase in the value of pension scheme assets has been offset by falling interest rates (according to consultants Deloitte & Touche).
David Robbins, consulting partner, said: “We estimate the stock market would need to rise immediately by a further 30% to eliminate the UK’s pension deficits”. Dick Stroud’s prediction for 2006, the market is not going to rise by 30%.
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