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Economist: U.K. pensions face 'death spiral'

(London Telegraph) The Bank of England’s policy of quantitative easing has done “irreparable damage” to Britain’s final salary pension schemes, a leading economist has said.

While the Bank made no extension to its QE programme yesterday, its policy of forcing down long-term interest rates has caused huge problems for the pension schemes of many firms, according to Ros Altmann of Saga, the over-50s’ group.

Pension deficits at FTSE 100 firms have more than doubled in the last year alone, despite companies pumping millions into their schemes to repair their pension shortfalls, Ms Altmann said.