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 [...]
Brewin Dolphin, the UK’s biggest independent private client portfolio manager, has revealed figures which show that almost half the adult population (18m people) have no pension, and some 7m intend to fund their retirement through their property. The figures come as the financial crisis begins to hit the real economy, with house prices still sliding [...]
Providers of Self-Invested Pension plans (SIPPs) are expecting strong inflows following changes in pension regulations that took effect on 1st October, allowing people with protected pension rights pension pots to transfer their funds into a SIPP. Around six million people who, from 1998, opted out of the state second pension scheme (previously known as SERPS) [...]
The Pension Protection Fund (PPF) took over 15 insolvent pension schemes during August. Fifty-seven schemes have transferred to the fund since it was established in 2005 to compensate members of schemes belonging to companies that have been placed in administration. The latest batch of transfers brings a further 3,597 people into the PPF’s remit, increasing [...]
Further evidence that final salary (also known as defined benefit) pension schemes are on the road to extinction comes from Aon Consulting, which has recently completed a survey of over 100 pension scheme managers. According to the research, the number of schemes open to new members now stands at a record low, with 83% of [...]
Legal & General (L&G) is extending its range of individual pensions with the launch of its Portfolio Plus Pension (PPP), which is available from today. PPP takes the form of a fully insured personal pension product that makes available a choice of over 300 insured funds from over 40 fund managers. Each payment type can [...]
The Office of National Statistics has published a report that shows the number of active members of occupational pension schemes fell to 8.8 million in 2007, from 9.2 million in 2006 and 9.8 million in 2004. Last year, the number of final salary schemes in existence declined by nearly 5,000 to 54,114. Of the schemes [...]
Zurich has launched two new pension trusts: the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust. Both trusts aim to give customers flexibility in their estate planning. In the case of the Pensions Discretionary (2 years) Trust, benefits must be paid within two years of death, thus avoiding Inheritance Tax liability. [...]
Royal London, the UK’s largest mutual life and pensions company, has been investigating pension plan charges on policies that are “paid-up”. The research reveals that large numbers of people who have contributed to group personal pension schemes and opted not to transfer their funds to their new pension arrangements when they change jobs, are paying [...]
The National Association of Pension Funds (NAPF), which represents the UK’s workplace pension providers, is encouraging employers to help staff understand the benefits of their pension schemes. In a recent survey, the NAPF found that 29% of all employees with access to a workplace pension (members and non-members of schemes) were unaware of pension tax [...]
From November of this year, Norwich Union (NU) will be including clients’ postcodes, marital status and use of tobacco in its method of pricing its annuities, which give an annual income for life in exchange for pension savings. NU annuity prices are currently calculated on the basis of a person’s age, gender and the size [...]
Prudential has launched a lower cost FundSIPP option that provides direct access to 1,100 funds through supermarket Cofunds. It is being offered through both the personal pension and income drawdown elements of Prudential’s Flexible Retirement Plan. A maximum of 20 Cofunds can be chosen and the fund choice also include Prudential’s existing insured funds, such [...]
The National Association of Pension Funds (NAPF) has joined forces with Wheels Common Investment Fund (WCIF), which manages private pension schemes for Ford, Jaguar and Land Rover to mount a legal challenge over VAT. HM Revenue & Customs (HMRC) currently collects VAT on the investment management services supplied to occupational pension funds and WCIF and [...]
A recent surge in the acquisition of pension schemes has prompted the Government to install new powers in the Pensions Regulator. Trustees of company pension schemes have become increasingly keen to offload the responsibilities and balance sheet liabilities of company pension schemes but the Government is keen to ensure that schemes are not treated as [...]
