FTSE 350 final salary schemes 'will cease' by 2027

Cost pressures to blame

clock • 2 min read

No FTSE 350 companies will retain a final salary pension scheme open to accrual by 2027, analysis by Hymans Robertson finds.

The cost pressures associated with running these defined benefit (DB) schemes will inevitably mean companies will give up on trying to keep up with growing liabilities. Currently, just 45% of FTSE 350 companies continue to operate a final salary scheme either open to both new members and future accrual or just open to future accrual. Yet, increased scrutiny and financial demands on sponsors, particularly from The Pensions Regulator (TPR), will cause the doors to be shut. This will be particularly acute following the last two years' BHS and British Steel problems, the FTSE 350 Pensions...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pension freedoms and lessons from Down Under

Pension freedoms and lessons from Down Under

How the UK can build a more 'robust and supportive' system

Verona Kenny
clock 09 April 2025 • 4 min read
UK workers regret not learning about pensions sooner

UK workers regret not learning about pensions sooner

Over half admit to feeling out of their depth, research finds

Isabel Baxter
clock 08 April 2025 • 2 min read
Why is it so difficult to switch a pension? Navigating the transfer maze

Why is it so difficult to switch a pension? Navigating the transfer maze

‘If I didn’t work in pensions, I might have simply given up on many occasions

Lisa Picardo
clock 08 April 2025 • 4 min read