Three out of four companies will struggle to meet their existing requirements for final salary pension schemes.

That is according to the National Association of Pension Funds, who found in a new survey that the contributions of companies to these schemes are rocketing.

“The picture which emerges from today’s survey is one of firms struggling to maintain a commitment to providing decent pensions for their staff, while policy makers – far from supporting their efforts – impose further burdens,” said NAPF chief executive Christine Farnish.

“Even the most committed firms are now struggling to manage costs,” she added.

A raft of companies are replacing their final salary schemes – which guarantee retirement income based on length of employment – with money purchase schemes.

These purchase schemes simply guarantee how much firms pay into an employee’s pension, rather than how much the pension will be worth in retirement.

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