Pensions

Soaring fund management and custody costs hit DB pension schemes

Defined benefit scheme costs soar 37% in a year, study finds – and for small schemes it's even higher

Wednesday 7 December 2016 at 06:48

PLSA chief executive Joanne Segars
PLSA chief executive Joanne Segars

Defined benefit pension schemes are under pressure like never before with running costs up by 37% in a year, according to a survey by the Pensions and Lifetime Savings Association.

The average annual cost of running a defined benefit scheme has risen to £546 a member, the association said. For schemes with less than 5,000 members the rise is even steeper - up 63% to £787.