Top British companies have been forced to pump £200billion into their pension schemes to avoid a drop in funding, figures reveal.
Law firm Lane Clark & Peacock said the sum – equivalent to the economic output of Czechia – was needed to counter tumbling share prices and bond yields.
‘Running just to stand still’: Law firm Lane Clark & Peacock said the £200billion sum was needed to counter tumbling share prices and bond yields
It warned that firms were ‘running just to stand still’ and that the overall surplus stood at just £10billion in 2020 – broadly similar to 2007.
The findings come amid fears that forthcoming changes to pension regulations could worsen the situation.
Firms may have to double their pension contributions and prioritise them over other demands such as dividend payments.
LCP partner Jonathan Griffith said further ‘challenges on the horizon’ included market volatility and the uncertainty of the impact of Covid on life expectancies.