Business advisor, Deloitte has warned companies investing pension schemes in equities and property are taking a gamble.
It revealed blue-chip companies, on average are risking about eight per cent of their value through these investments – some are even prepared to wager more than 100 per cent.
“Companies need to pro-actively work with pension scheme trustees to focus on the right strategy for their individual circumstances,” advised Deloitte’s pensions partner, David Robbins.
“To give an idea of the extent of the risk, we calculate that there is a one in 20 chance of FTSE 100 pension scheme deficits increasing by a further £80bn over the next year.”
Commercial property has long been a staple investment for funds seeking reliable long-term growth, although values have fallen recently.
Deloitte claimed the industrials sector has the highest risk compared to company value (16 per cent) and firms in the oil and gas business have £16 billion under threat.