Final day pension schemes in UK closed at alarming rate in 2012

Final day salary pension schemes in UK shut down at a record rate last year, as they took a hit from the  the money printing programme of the coalition government.

Figures from the National Association of Pension Funds (NAPF) showed that only 13 per cent of Britain's 6,000 final salary schemes remained open to new workers – a drop of one third from 19 per cent in 2011.

 The generous defined benefit schemes were also closed to existing members at a rapid rate last year, as the number being shut shot to 31 per cent last year, as against 23 per cent in 2011.

The past few years have seen major companies including Shell, Unilever and Alliance Boots close their schemes, with the trend showing signs of accelerating. The Royal Opera House was among the organisations that recently was in consultation over closing its final salary scheme.

These gold\-plated retirement plans already under pressure from red tape, poor investment returns and people living longer have been undermined by The Bank of England's quantitative easing (QE) programme.

According to Joanne Segars, NAPF chief executive, the pressures on final salary pensions had proven too great for many businesses. She added the growing liabilities fuelled by QE would have been a factor behind the record hike in closures.