Barclays: UK Pension Issues Are Going To Get Worse

Step aside America, the UK Pension system could be in greater trouble. Of all the issues facing the United Kingdom right now, pension funding has to be the most severe. Decades of gold-plated defined benefit pension schemes have lumped UK corporates with trillions of pounds of future obligations to previous employees and these obligations are growing by the day. The situation has become so severe in recent months that some companies have cut or eliminated dividend payouts to investors to meet retirement obligations. After the country’s decision to leave the European Union, UK sovereign bond yields plummeted and a rate…