12 months to save UK final salary schemes – UK Pensions Minister

On March I wrote an article well this seams to be an answer 12 month , and that’s from the Pension Minister.

I have spoken to many people on this , and we are helping many . So if you want to know what you can do or like more info on this please drop me a mail tony.evans@devere-group.com

UK has 12 months to save final salary schemes – Pensions Minister.

UK Pensions Minister Steve Webb warned that there may only be a year to save company pension schemes that offer a guaranteed payout to savers and that there is ‘no point trying to apply electrodes to the corpse’.

Speaking to the pensions industry, Webb said that companies are opting to close defined benefit schemes and instead introduce defined contribution schemes where the members’ payouts are based on the performance of the investments and the annuity they buy with their fund on retirement.

However, Webb wants to see more ‘defined ambition’ schemes, which offer a middle ground with more secure payouts than a DC scheme, but this means that employees will take on more risk.

Webb believes that next year offers a critical opportunity to talk to companies about what they are offering their workers, as the programme to automatically enrol workers into pensions is rolled out and the introduction of a flat-rate state pension is fast approaching.

Defined benefit pension schemes, also known as final salary schemes, have been under pressure in recent years, since a combination of increased life expectancy and low gilt yields have made it increasingly expensive for companies to provide the retirement incomes promised to members.

Notably, research by the Pensions Protection Fund showed that by the end of April 2013, 5,142 of the UK private sector schemes were in deficit, with the total shortfall between liabilities and assets adding up to £257 billion.

Nigel Green CEO deVere Group comments

http://www.guardian.co.uk/money/2013/may/15/final-salary-schemes-pensions-minister

http://www.express.co.uk/news/uk/400226/Final-salary-pensions-in-meltdown

pension

  1. July 3rd, 2013
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