More UK companies are expected to adjust capital or cut dividends to fill growing holes in final salary pension schemes this year.
The discovery of huge pension deficits at Tata Steel and collapsed retailer BHS in 2016 caused scandals and drew attention to the widening gap between the assets held by such schemes and the money they owe to pensioners.
British government bonds, or gilts, have been the main assets of defined benefit or final salary pension schemes. But years of low UK interest rates and a flight to safe-haven investments after Britain’s June vote to exit the European Union have depressed yields, leaving shortfalls.
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