Pensions black hole deepens
PRIVATE sector final salary pension schemes are facing a record £222.1billion black hole because of “quantitative easing”, new figures revealed yesterday.
The enormous total deficit of 6,533 schemes is now estimated to have increased by £64billion since the end of October to reach the new low at the end of November, according to the Pension Protection Fund.
This is worse than in 2010.
One reason is the Bank of England’s move to pump more money into the economy – a tactic known as quantitative easing.
The Pensions Regulator must help pension funds deal with quantitative easing by giving them some breathing space
Fund managers taking risks with the hard-earned investments of millions of workers were also blamed for piling on the misery for those in retirement. The latest figure is the largest deficit since the records began in March 2003.
Joanne Segars, chief executive of the National Association of Pension Funds, said quantitative easing had worsened the situation.
She added: “The Pensions Regulator must help pension funds deal with quantitative easing by giving them some breathing space.”