Posts Tagged ‘ Uk pension deficit ’

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

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.

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