More pension scheme closures on way

The majority of companies have already closed their defined benefit schemes to new members – and 94 per cent plan to close them altogether or reduce the benefits that existing members can accrue.

The number of companies that have closed their defined benefit pension schemes to existing members has doubled during the past year, with a third of companies stopping existing members of the schemes from paying into them, up from just 14 per cent during the previous year, according to accountants PricewaterhouseCoopers.

A further 30 per cent of firms said they planned to close their scheme to future accrual going forward.

Only 6 per cent of companies said they intended to maintain their defined benefit pension in its current form.

Marc Hommel, pensions partner at PricewaterhouseCoopers, said: "Employers are sounding a repetitive death knell for defined benefit pensions.

"Numerous factors, including the size and volatility of funding costs, and also concerns about the inequality of pensions provision within an employer's workforce, are accelerating their demise."