Record fall in workers' final salary deals

Final salary pension schemes closed their doors to existing members at a record rate during 2010, research has indicated.

Around 17 per cent of companies have closed final salary schemes to existing members as well as new members, up from 7 per cent in 2009 and 3 per cent in 2008, according to the National Association of Pension Funds.

A further 33 per cent of companies are planning to make changes to their scheme, such as cutting the benefits they offer, or moving staff into less generous defined contribution pensions, under which individuals shoulder all the risk.

The group said the research pointed to a "new phase in the decline" of the schemes after a wave of companies closed them to new members of staff as they became increasingly expensive to offer in the face of rising life expectancy and volatile investment returns.