Only 40% of UK-based corporates boast final salary schemes that remain open to new members. This figure stood at approximately 66% a year ago, although the figures, collected by Mercer HR Consulting, also shows that final salary schemes are not disappearing altogether.
Money purchase pensions are increasingly being offered as an alternative to final salary schemes, and 75% of top UK corporates have now opened money purchase pensions, compared to 55% last year.
“A striking development in recent months is the number of employers re-committing to final salary schemes, but rebalancing the costs,” says Tim Keogh, European partner at Mercer.
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