Posts Tagged ‘ billion ’

UK pension defict increased to – £236 BILLION

This problems seams not to get better , FTSE was up over 10% in the first quarter and yet the deficit increases . £236 billion or $360 billion USD that’s the equivalent as the GDP of Thailand or if it would be its own country it would be the 26th largest country in the world!

I personally advising clients to transfer out of these as its a matter of when not if ,

I wrote in the British Chamber of Commerce Japan an article on this . If you like to read it , click here

UK Pension Deficits Increase yet Again

Scary , time to act now .

Tony Evans , Tokyo

The total UK pension deficits of defined benefit schemes increased by GBP35billion in one month!!

The Pension Protection Fund released figures suggesting that the deficit for the 6,300 Defined Benefit Schemes in the UK, which have 12million members, jumped to GBP236 billion in February.

The increasing deficits can be attributed to the drop in Government gilt yields due to Quantative Easing and also lower longer term investment returns – meaning that Pension Fund Investment Managers are now having to take bigger risks to support their funding liabilities.

The figures are all the more remarkable considering that it is estimated that the UK top 100 Companies contributed in excess of GBP12 billion in extra contributions in an attempt to close the deficits.

Clearly, with most schemes now closed to new members, existing members may well begin to see some of their existing benefits eroded, as schemes reduce pension increases or increase normal retirement ages. What a mess!

Blog written on Monday 15th April, by Nigel Smith.


Deepening pensions crisis leaves UK firms thinking What can we do ?

I just read an interesting article by JLT Pension Capital Strategies which show the total deficit of FTSE 100 defined benefit pension schemes has increased by two thirds in the past year! Yes I did say that 66%!
Middle of last year the deficit stood at around £33billion now £55billion.

Looking at the FTSE 100 companies there is 11 companies with pension liabilities greater than the market capitation!!

The blue chip company are trying their best to plug the hole but it looking like throwing good money after bad. They have started looking at alternative investment like international investment and property , but there is quick fix .

My personal view there’s no quick fix for this, the future is not looking any bette!

Bank of Japan ready to declare war on deflation ???

Is the Bank of Japan ready to declare war on deflation ? I believe so , Kuroda said last week he would take aggressive action to stop deflation and to increase the growth of the economy .
I personally believe he will look at around $1billion a DAY ! At the moment the BOJ has plans for $1billion every 2 days starting next year ,
His comments last week gave us the impression he wants action now rather than later !

“It would be natural for the BOJ to buy longer-dated government bonds in huge amounts,” Kuroda said in a confirmation hearing in parliament .

I personally see no real change until the up and coming election has been won by Prime Minister Abe . Reason for this is that Japan have been sheltered from high energy price , commodity and food price and residents in JAPAN haven’t seen their bills increase as most other G8 countries .Weaker Yen means higher prices for consumer ( voters ) and that means no votes !

Kuroda has still not been confirmed as the new Bank of Japan governor but the markets have already taken this as a given , Nikkei goes up 2+/-% in a day.
A 1% increase means the Nikkei adds around $23billion !!!

I see Abe drawing up a battle plan for war , at the moment he is just appointing his “generals” , summer time I can see the full war!


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