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The total size of the pension deficit of all the companies listed in the FTSE-100 Index has more than doubled to a record £300 billion since January, as the continuing fallout from the global financial crisis destroys the value of pension funds' investments.
That was the calculation of accountancy firm Deloitte, which today said that, at the current rate of cash contributions being made by companies into the funds, it would take more than 50 years to clear the massive shortfall.
David Robbins, a partner at the firm, said: “The continuing fallout from the recent financial turmoil means that pension deficits have now risen to the highest levels we've ever seen.”
The accountant predicted that businesses would be forced to find alternative means of bolstering funds, such as putting property into the pension fund pot, rather than just cash.
These alternatives would allow companies to revive their pension plans without eating into profits.
Deloitte pointed out that closing final salary pensions would not be enough to make much of a dent in the shortfall.
