uk The global financial meltdown will affect pensions both by hitting the performance of already battered funds but, perhaps more significantly for the long term, by further denting consumer confidence. Pensions have been mired in controversy for years, dogged first by mis-selling scandals and then the collapse of pensions giant Equitable Life. All this means that pensions provision has become more expensive, so much so that large numbers of companies have scrapped once-generous final salary pension schemes, or closed them to new members amid fears that they could be crushed by the weight of future liabilities. According to the National Association of Pension Funds, 70 per cent of final salary schemes are now closed to new employees compared to 17 per cent in 2001.

Can we survive the coming storm? | Business | The Observer