Death knell for defined schemes

The pensions landscape is going to be dramatically changed and private sector workers are going to have to either work longer or pay more into their pension schemes.

The era of the defined benefit pension scheme has come to an end, with Independent News & Media considering closing its defined benefit pension scheme and AIB winding up its scheme.

Defined benefit schemes guaranteed an amount of benefit to be paid to retirees for the rest of their lives, usually calculated on their final income. Nearly 80% of these schemes are now in deficit, according to IFG pensions consultant Kevin Bailey