Final salary schemes

Final salary pension schemes entitle the pension holder to a level of income equal to or a proportion of their final salary.

These types of pensions are becoming increasingly rare and are often closed to new members as private companies have realised the cost and many companies have attempted to plug the hole in their pension fund.

If you are lucky enough to be in a final salary pension scheme you should continue contributing to this to receive the greatest benefits.

Many of the firms that were operating these schemes have switched to career average or defined contribution schemes.

	Final salary pension schemes are 'finished' Final salary pension scheme no longer have a future, a senior pensions expert has predicted.
	Final salary schemes deficit grows The deficit on final salary pension schemes has worsened over February, to £218.7 billion, as companies struggle to fund the schemes.
	Half of final-salary schemes set to close Over half of the remaining final-salary pension schemes are set to close to existing members as a result of the economic crisis, an industry body has warned.
	More final salary pensions schemes close to new members The recession has continued to take its toll on private sector final salary pension schemes, according to the National Association of Pension Funds (NAPF).
	NAPF: QE has led to £270bn final-salary pension funding gap The National Association of Pension Funds (NAPF) says that the £325bn programme of quantitative easing has cost final-salary pension schemes £270 billion since 2009.