An industry expert in the field of pensions has suggested that most of the bluechip companies move their pension assets into bonds in order to secure the repayments to those who are retired already.

He brought it up as many of the companies and local government pension plans have been thought to be around £125 billion shy of the monies that they have already agreed to pay.  This all comes as no surprise in a time when the pension industry is just not working right.  It has been attributed to the ageing population in this country as well as the rising liabilities which seem to have marred some of their traditional earnings since the dotcom crash at the turn of the century.

The UK Pension Protection Fund has been set up to safeguard the benefits from these schemes if a trusted company goes under and this will initially hold all the assets in bonds or cash respectively.

Basing their analysis on the companies on the FTSE 100, some of the industry experts insisted that payments out, currently make up about 50% of the liabilities and the funds aren't holding enough bonds to set against this.  Comparing it to other countries economies, analysts found that the picture is similar in the United States where the government and private pension schemes are also hanging short of bond assets.

Investing 63 % of all holdings in equities, the British schemes will continue to pull out of stocks into bonds, this year in order to cut their risks with a 5% reduction from 2003 or so we hope.