A new report by the OECD has found that the performance of British pension companies over the past decade has been nearly the worst in the developed world (Spain and the US are just below the UK). You can read the Daily Telegraph's coverage of this report here. The poor performance of pension companies is all the more worrying as so many companies have switched away from a final-salary scheme, shifting the risk of pension under-performance unto employees. Indeed, the disappearing equity premium may have accelerated the switch away from final-salary schemes.
