Final salary schemes will become history

Most defined benefit schemes have passed the point of no return, writes Alistair Graham

Final salary schemes are history. That is the verdict of corporate Britain, which in the last few years has learned enough about the impact of providing a final salary pension to know it wants rid of them.

Most final salary or defined-benefit (DB) schemes are being closed in favour of cheaper defined-contribution (DC) schemes, which unlock employers out of paying guaranteed pensions and transfers the risk to employees.

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