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UK pension managers under strain

Crash in global bond yields is widening funding gaps even as BOE expands its bond-buying programme in an attempt to ward off a Brexit-induced slump

Published Tue, Aug 23, 2016 · 09:50 PM

Brexit

London

PENSIONS are looking like an economic time bomb for Britain, disrupting the plans of future retirees and today's investors as the nation tries to defuse it.

While deficits in defined-benefit retirement plans have ballooned to records, the task of covering future liabilities - which already exceed the UK's US$2.1 trillion of sovereign debt - is straining pension managers.

That is because the cr…