Nearly nine out of 10 final salary pension schemes face a funding shortfall, a report showed today.
About 89 per cent of the pensions are in deficit, collectively facing an estimated £130bn black hole, according to the Association of Consulting Actuaries.
But the problem appears to be easing slightly, with the survey funding the funds were now 85 per cent funded on average, compared with 80 per cent last year.
It blamed increased life expectancy and poor investment returns for the situation, and said firms were increasing the amount they paid into the schemes to address the problem, while 27 per cent had also paid in significant lump sums.
Annual contributions to final salary schemes are now equivalent to 22 per cent of a member's salary, up from 15.8 per cent in 2002.
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