An increased life expectancy has cost UK private sector pensions an estimated £30 billion over the last two years alone, according to analysis from Big 4 firm KPMG.
Currently the total UK private sector pension liability is estimated at approximately £500 billion.
It is companies in the FTSE 100 that have been the most affected, with about £25 billion added to their balance sheets in 2005-06.
Alastair McLeish, head of KPMG's Pensions practice, said: "When increasing life expectancy and falling market returns started putting a strain on companies' finances, many closed their defined benefit schemes.
"But this is not always the best solution. Defined benefit schemes, whether they are based on final salary or career-average earnings, are highly valued by employees as part of an overall benefit package."
Many companies are examining ways to approach defined benefit pensions risks and a few have tried ways of sharing the risk of longer life-spans with members, Mr McLeish added.
Currently life expectancy in the UK is 76 for men and 81 for women, according to the Office of National Statistics.
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