Pensions - Articles - DC schemes in the UK are currently 83% underfunded, says PTL

 Commenting, Richard Butcher, Managing Director at PTL, said:

 “In 2013 we calculated that the funding gap in DC pension provision was £2.2 trillion. Worryingly, nearly two years on from our initial calculation, today’s analysis suggests that the state of play has barely improved, despite greater attention seemingly being given to DC since then. To put these numbers into context, if UK DC was a DB pension scheme, it would currently be 83% underfunded.

 
 Butcher continued: “There really is no more time to waste in making a dent in this figure and moving the level of DC much closer to the replacement incomes that members are expecting, particularly as we move towards a new DC future. Governance still needs to be robust across the board and efforts with members still need to take hold fully. Member decisions have to be made on informed decisions and based upon their understanding from an earlier age of what it is they are planning for. Education and expectation management is still lagging badly behind where it needs to be.”