One in five FTSE 100 pension schemes at risk of failure in an economic downturn


Reveals new research 

New integrated risk research reveals true scale of defined benefit pension risk for the first time.

New research from Cardano and Lincoln Pensions, the investment and risk specialists, has found that one in five FTSE 100 companies could struggle to meet their commitments to pension scheme members during an economic downturn.

Cardano and Lincoln Pensions have today launched The Worry Index. The research brings together funding, covenant and investment risk measures to provide, for the first time, a comprehensive view on the health of FTSE 100 DB schemes.

Increasing risk

The report finds that risk is on the increase for FTSE 100 DB schemes. The level of risk facing FTSE 100 companies’ pension schemes has increased by around 20 per cent over the last three years. Scheme risks are growing faster than their supporting businesses and, in general, FTSE 100 pension schemes have become less secure over that timeframe.