Private pension schemes deficits can be reduced by investing in commercial property, an expert claims.
Property investment is the perfect way to fill the deficit in funding for the private pensions sector, it has been claimed.
Commercial development assets can provide security for the fund pot, as well as generating additional income, according to pensions and investments expert Dr Ros Altmann.
The Pensions Regulator has for some time been recommending the use of contingent assets - such as property - in this way, Dr Altmann claims.
"Any company that can do this should be considering it and it would interfere less with the running of their business because the property will only pass to the pension scheme if the company fails," she added.
Her comments follow the announcement last week from J Sainsbury's, which confirmed the company would be investing in property.
The supermarket chain believes that a portfolio of commercial property investments will reduce the current £1.22 billion actuarial deficit in its pension scheme.
Posted by Allan Flowers.
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