FTSE350 report - impact of pension schemes on UK business

Published by Nick Griggs on

Our 6th annual report on the FTSE350 shows that the defined benefit (DB) pension schemes of the UK’s largest public companies are expected to pay out around £20bn in pensions over the next year.

This compares to around £90bn spent by the government on state pensions and shows the massive contribution made by these large companies in supporting their former employees in retirement.

"Future funding needed to meet DB pension obligations is another unwelcome area of uncertainty magnified by the vote to leave the EU. "

Our report highlights the impact DB pension schemes are having on FTSE350 businesses. We have summarised the key data collected from over 200 companies within the FTSE350 that sponsor DB pension arrangements.

Separate analyses have been carried out for FTSE250 companies as well as businesses within different industry sectors.

  • FTSE350 firms are expected to pay over £1.4tn in DB pension payments to former employees over the next 60 years, of which £250bn will be in the next 10 years
  • 19p in DB deficit contributions paid for every £1 returned to shareholders
  • Over 10% of FTSE350 companies analysed had pension obligations that exceeded the market capitalisation of the company

Please complete the short form below to view the full report - we hope you find our research highly insightful.

FTSE350 report - impact of pension schemes on UK business