UK's £2 trillion pension scheme liabilities outstrip nation's GDP

UK private sector defined benefit, or final salary, pension scheme liabilities of £2 trillion had outstripped the UK's GDP for the first time due to ultra-low interest rates, according to pension consultants Hymans Robertson, Reuters reported.

Low interest rates had meant pension funds were struggling to make the investment returns needed to pay their pensioners.

The £2-trillion pension gap exceeded the UK's gross domestic product of £1.8 trillion, according to a statement by Hymans Robertson.

According to the consultants, there was a pressing need for DB (defined benefit) schemes to focus on income-generating assets rather than simply chasing capital growth.