- Yields are down 0.98% since the UK’s vote to leave the EU
- A typical pension scheme will take 23 years to be back in the black
Falling yields on long-term investments since Brexit mean that companies will take more than 20 years to cancel out their pension deficits as they face larger gaps than previously expected, according to a report.
A typical pension scheme that in 2010 would have taken 10 years to be back in the black is forecast to take more than double the time – 23 years – as a result of bond yields continuing to fall in the aftermath of the UK’s vote to leave the EU.
The yield, or interest rate, on bonds is often used to calculate pension deficits. Yields are down 0.98 per cent since the UK’s vote to leave the EU.
A report by…