Pensions a growing risk for businesses, survey finds

Employers now see final salary pensions as the second largest risk to their operations, research from Aon Consulting has concluded.

Demand for corporate banking services from businesses could be set to rise, as the management of pensions is now second only to the current economic environment in terms of firms’ biggest worries.

The study revealed over 40 per cent of firms see pension schemes as a ’very high’ or ’high’ risk to their operations, up from 25 per cent in 2008.

Nearly half (48 per cent) do not derisk their pension initiatives on a regular basis and head of corporate solutions for Aon Marcus Hurd said it is ’no wonder’ they are a big concern for enterprises.

’The financial meltdown of late 2008 and early 2009 catalysed a massive swelling of final salary deficits which has not showed real signs of recovery,’ he explained, adding pensions ’have been sucking up liquidity’ during this time.

Last month, the Financial Services Authority said it was concerned a number of firms are failing to meet industry pension switching standards.ADNFCR-2318-ID-19800995-ADNFCR