Pension funds

Pension funds are the accounts that receive receipts into private or company pension schemes. They are normally administered by the company secretary or a senior figure in the company or contracted out to private firms who specialise in the administration of private company pension funds.

Pension funds are the receipts of all contributions by a firm from employees and employers. The money is often invested in the stock markets and typically, the value of the fund is expected to grow by between five and ten per cent annually.

However, during the stock market crash in 2008 many pension funds fell in value dramatically leading to many firms having a deficit in their pension funds, whereby their expected outgoings in future payments dwarf the receipts left in the pension fund.

Pension fund administrators obviously expect to recoup much of their losses as the stock market recovers and have already done so in many cases. To illustrate how the funds were expected in July 2007, the top 100 UK firms had a surplus of £12 billion but by July 2008 the same firms pension funds had a combined deficit of £41 billion.

Related Articles

Put your question to's pensions expert

What are the pitfalls of releasing funds from a pension policy?

A reader has come across a scheme that is offering to release funds from an old pension scheme he has invested and wants to know the pitfalls.

Confused about pensions? Ask the Expert!

Can I raise funds from an old work pension?

A reader wants to know what options and tax implications there are about raising funds against an old employers pension.

Put your questions to's pensions expert

Can I force a previous employer to release my pension funds?

A woman wants to know if she can cash in her pension with a previous employer

RSA report warns over hidden pension fees

Pension funds could be halved by hidden costs, warns RSA

Hidden charges are slashing Brits’ pension pots, while providers are misleading savers about the effect of fees, a leading think-tank has warned.

17 per cent of British workers will struggle financially before payday arrives

17% of people run out of funds 3 weeks into the month

Some 17 per cent of British workers will struggle to pay for daily spending after the three-week mark in a month, according to new research

See more related articles

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: