Pensions black hole 'closing'

10 August 2007
New figures show that the UK's pensions black hole is closing, it has been reported.

Research from Lane Clark & Peacock actuarial group has claimed that the sector is back in the black for the first time in around five years.

Over the last 12 months, the UK's top FTSE 100 companies have attained £12 billion surplus from £36 billion deficit.

The firm speculated that this was down to better stock market performance and bond yields as well as companies piling record contributions into pensions.

However, the company did warn that schemes were still "fragile".

"UK pension schemes are not out of the woods yet," commented Bob Scott, a partner at Lane Clark & Peacock.

The pensions industry has been in the spotlight throughout the year.

In March, Gordon Brown's 11th and final Budget before he became prime minister saw the politician axe pension terms assurance, meaning that many low income families could struggle to make ends meet.

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