Pensions row ends Reader's Digest in UK

Its embattled US parent group – Reader's Digest Association – said it was no longer able to support the British edition following the UK Pensions Regulator's decision not to give the green light to plans to fund its UK pension.

The British edition of the magazine has a history dating back to 1938. It has offices in Canary Wharf, east London, and Swindon, Wiltshire.

Last week's prize draw would also be paid out to winners, as the Reader's Digest prize fund is held in a trust, according to the administrator.

But the company said it was too early to comment on the future of the magazine's 117 UK staff.

The title's failure means its UK pension fund, which has 1,600 members, may have to be bailed out by the Pension Protection Fund (PPF) lifeboat.

The PPF pays out in full for members currently drawing a pension from failed schemes, but caps payment for those who are yet to retire at 90 per cent, with a ceiling of around 28,000.

This limit is expected to leave around 32 members out of pocket.