Skip to content

Asset-backed pensions top £5bn

Research has found that asset-backed financing for pension schemes is increasingly the weapon of choice for businesses, as they battle to reduce their pension deficits.

Asset-backed financing saw contributions of more than £5 billion in the past two years alone.

KPMG predicts that up to half the FTSE 100 could take up the method, under which a sponsoring employer uses business assets to generate cash which is then paid to the pension scheme.

Contributions could, says KPMG, rise above £10 billion by the year 2016.

Mike Smedley, pensions partner at the organisation in the UK, said: "This type of financing is becoming increasingly popular as businesses battle to reduce their pension deficits."

Copyright © Press Association 2011

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Syscap Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

Click for more information about the Wesleyan group of companies.

© 2016 Wesleyan Assurance Society