Is it the end for the final salary pension scheme?

People could be at risk of losing out financially when they retire as the final salary pension scheme may be coming to an end, an industry expert has claimed.

Reacting to new statistics released by the Pension Protection Fund, Gordon Forbes, managing director of Caledonia Asset Management, professed that the arrangements might be on their way out.

He observed that some of the schemes wasted costs as there are too many advisers and stated that the nation could be heading the way of another country where the systems have become obsolete.

Mr Forbes said: “We will probably end up in a situation like they have in Australia where the only final salary pension schemes are government officials.”

The figures showed that the deficit for these retirement options had fallen from £51.9 billion at the end of January, to £15.1 billion when February drew to a close, which helped reduce the total scheme deficit to £79.5 billion from £102.8 billion.

By Joe Shervin