‘Half of firms’ seeking to end final-salary pensions

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

More than a million workers currently saving for retirement through defined-benefit pensions will be forced to shift to defined-contribution schemes — where retirement income depends on investment returns, according to a survey of 250 of the UK's largest employers by Watson Wyatt.

Fewer than a quarter of private sector final-salary schemes remain open to new entrants, compared with 70% five years ago. UK firms are believed to have a combined pension scheme deficit of around £200 billion, and the rising cost has become a greater concern for companies in the downturn.

Rash Bhabra, head of corporate consulting at Watson Wyatt, said: "Employers are taking a long, hard look at the risks they run through their pension schemes and saying enough is enough'. When times are tough, it is hard to justify keeping more generous pension arrangements for a dwindling number of long-serving staff."

He predicted the number of firms closing schemes will snowball. "Directors will not want to explain to shareholders why they are off the pace when it comes to emulating the pension savings others have achieved. The recent surge of scheme closures could easily become an epidemic."

Only two Footsie 100 firms — Diageo and Tesco — still offer final-salary pensions to existing or new staff.