Private sector discontent over the prosperity gap between private and public sector pensionners will be fuelled by a new report from PricewaterhouseCoopers (PwC). While private sector workers in defined contribution schemes receive an average employer contribution of around 6% of salary, public sector workers in their final-salary schemes could be receiving an employer contribution of [...]
A new report on UK company pension schemes suggests that half of all defined benefit schemes will close within the next three years. The cost of providing the schemes is escalating as a result of increased longevity. At the same time, funds have lost value during the credit crisis. As a result, the majority of [...]
The pension funds of the UK’s leading companies have seen a huge rise in deficits over the last 12 months. A new report by consultants, Lane Clark & Peacock (LCP), based on the FTSE 100 stock index, concludes that the combined deficit rose to £96 billion last month, compared with total deficit of £41 billion [...]
The global organisation that represents the Hedge Fund industry has warned that a European directive on Alternative Investment Fund Managers could blight the pension industry. The Alternative Investment Management Association (AIMA) claims that the European Commission’s draft proposals could cost Europe’s pension fund industry up to €25 billion a year, if implemented in its current [...]
The Pensions Ombudsman, Tony King, has published his annual report for the period 1st April 2008 to 31st March 2009, which puts the number of new cases in need of investigation at 742. The figure is much in line with previous years and the report notes “the economic downturn and its impact on pension funds [...]
The financial crisis has seen the combined deficit of the UK’s 200 leading defined benefit pension schemes increase to £73 billion. New research from Aon Consulting shows the shortfall soaring in June, largely as a result of falling yields on corporate bonds. According to Aon, defined benefit schemes are shifting investment strategies away from equities [...]
The impact of the recession on retirement planning among women is highlighted in the latest UK pensions’ report from Scottish Widows. According to the life assurer, the number of Britons contributing the 12% of salary recommended to provide an adequate retirement income has risen slightly in the past 12 months, from 51% to 54%. However, [...]
UK firms could close final-salary pension schemes en-mass, according to a new report from PricewaterhouseCoopers (PwC). In a survey by the accountancy firm 96% of businesses viewed their defined benefit schemes, which are based on salary plus years of service, as unsustainable. The research also revealed that 16% had already closed their final-salary schemes to [...]
The Institute for Fiscal Studies (IFS) has been assessing the future impact of Personal Accounts and has concluded they will have a “relatively small” affect on the UK’s pension shortfall. The Government-backed scheme, which is aimed at people who don’t belong to employers’ schemes, is due to be introduced in 2012. It is aimed at [...]
Three quarters of workers coming up to retirement are in danger of losing out on pension income because they are not shopping around for their pension annuities. Research by Just Retirement found that 75% of over 55s questioned did not have a full grasp of their retirement funding options, particularly the right to shop around [...]
The Pensions Regulator is alerting pension scheme trustees, employers and advisers to the increased risk of fraud during the recession. The body, which regulates UK occupational pension schemes, has stated that the economic downturn “may accentuate the vulnerability of some schemes to certain actions which give us cause for concern”. The watchdog is at the [...]
Aon has calculated out the damage so far caused by the credit crisis and recession to the private pension pots of 3.7 million people in the UK. According to the insurer and pension provider, since the beginning of October 2007 defined contribution (DC) savings have lost 29% of their value. Over a 17-month period, the [...]
Prudential has launched a new annuity aimed at those with over £10,000 in their pension pot, after tax-free cash has been taken out. According to the life assurer, the Income Choice Annuity gives retirees a more flexible way to fund their futures because it offers a choice on the level of monthly income. The sum [...]
Pension experts are expressing alarm at the Government’s plans for quantitative easing. They are worried about the impact of injection of up to £150 billion of newly created cash into the economy because of the impact this could have on annuities. In return for a retiree’s pension pot, an annuity provides a regular income based [...]
The UK Pensions Regulator is warning companies that they must put the health of their pension funds before shareholders’ dividends. In a letter to employers with defined benefit and final salary schemes, the chairman of watchdog, David Norgrove, has stated: “There is no reason why a pension scheme deficit should push an otherwise viable employer [...]
The demise of the final salary pension scheme has long been predicted but a recent survey by the National Association of Pension Funds (NAPF) illustrates how this process could be speeded up by the credit crisis. According to the research, one-quarter of the UK’s leading private sector companies expect to close their final salary pension [...]
The Pension Protection Fund (PPF) has announced that Bonas Group pension scheme has been afforded full membership of the fund, bringing the total number of schemes in the PPF to 67. The addition of Bonas Group means that a further 402 individuals will receive compensation, either now or in the future. The PPF was set [...]
AXA has launched a new type of company pension scheme called Save More Tomorrow, which it hopes will help address the lack of adequate retirement provision faced by many people in the UK workforce. As the name indicates, contributions are increased automatically over the life of the plan. According to research, around 12 million workers [...]
The Pensions Regulator has responded to recent extremely volatile stock markets by issuing a statement to the trustees of all work-based pension schemes. The watchdog acknowledges that developments in the financial markets will be of great concern to trustees, employers and scheme members. It therefore urges vigilance, and for trustees to focus on making sound [...]
