Private banking services as pension schemes close?

Private banking services might be a way to ensure clients with personal wealth are able to live comfortably in retirement, as one investment specialist observes many final salary schemes are closing as companies can no longer afford to maintain them.

And larger firms, such as corporate banks and legal service providers, might be among the first to scrap the plans, as final salaries in such jobs are substantially higher than in many other sectors.

Laith Khalaf, pensions analyst at Hargreaves Lansdown, noted: "We've had a raft of closures to new members and we expect over the next few years to see similar closures to existing members as well."

This means private banking services - which are tailored for those with personal wealth - could provide alternative financial support, with investment advice and asset management assistance also on offer.

A report from Pension Capital Strategies revealed only 144 companies in the FTSE 250 have a defined benefit post-work income scheme, of which just 86 continue to offer the package to more than a "handful" or current employees.  ADNFCR-2318-ID-800037244-ADNFCR