Pension deficit rate of rise slows but experts warn this isn’t the end of problems October 3, 2016 The meteoric rise in pension deficits abated during September with aggregate levels stagnating for the first time since the Brexit vote. Deficits have leapt since Spring after asset value growth failed to keep up with the rate at which bond yields have collapsed. Read more: Pension costs pose a material threat to UK plc profitability say [...]
Negotiations over the largest pension deficit in the FTSE 100 could be made worse by an Openreach spin-off October 2, 2016 BT's mammoth pension scheme deficit is threatening to derail Ofcom's plans to make its broadband infrastructure arm Openreach more independent from the telecoms giant. A consultation on the future of Openreach is due to close on Tuesday after attracting over 75,000 responses. Investors and analysts are deeply concerned that separating it from BT could cause significant issues for the group when it comes to [...]
Increased profits on the cards at Tesco but pension headache persists October 2, 2016 Tesco is expected to report on Wednesday that it has grown half-year profits but its steady resurgence could be undermined by a spiralling pension scheme deficit. Analysts expect a rise in underlying sales for the third quarter in a row and half-year profits could be as much as £624m – dwarfing the £354m generated in the same period last year. [...]
Record pension deficits could undermine the financial performance of the UK’s largest listed companies September 29, 2016 The largest listed companies in the UK could have £2bn of their bottom lines wiped out by spiralling pension costs according to data released today. Record low corporate bond yields – which are used to price pension pots for accounting purposes – have driven up liabilities. With asset values failing to keep up the increases [...]
Competition and Markets Authority to investigate price comparison websites September 29, 2016 The UK's competition watchdog is launching a wholesale review into price comparison websites to investigate how they make their money and whether they really do help consumers get the best deals. The Competition and Markets Authority (CMA) announced the review this morning – the latest in a long-line of high-profile probes the body has conducted including [...]
BMW faces backlash from unions on pension reforms September 27, 2016 Unions have hit back at BMW over proposals to close its UK defined benefit pension schemes, promising to fight the German motor giant's attempts to "salami-slice" retirement incomes. BMW wrote to 5,000 employees yesterday outlining proposals to close its two final salary pension schemes to future accruals from 1 June 2017. "It is clear that our members will be [...]
Pensioners refrain from splashing the cash despite retirement rule change September 23, 2016 Fewer than one in 10 (nine per cent) new pensioners overspent or think they will overspend in their first year of retirement, research out today has found. When polled on behalf of Prudential, just one in five (22 per cent) first year retirees planned on purchasing a luxury holiday and only 16 per cent intended to splash [...]
Workplace pension scheme member levels hit record highs, but experts warn enough still not being done to prepare for retirement September 22, 2016 The number of people with a workplace pension has soared to its highest level yet, but pensions experts have warned people still are not doing enough to get ready for their golden years. According to figures released from the Office for National Statistics (ONS) today, total membership of occupational pension schemes in the UK rose to 33.5m [...]
This chart shows pension savers in their 50s should put £7,500 more into their pension each year – while those in their 20s should save £1,500 more September 22, 2016 The average Briton in their 50s should be saving almost £7,500 more each year if they want to have a comfortable retirement. That's according to a study by Aviva, which suggests not only that the gap between what people in the UK are saving and the income they're expecting to have during their retirement has increased [...]
It’s official: Saving for a house is more important than saving for a pension (to under-35s, anyway) September 21, 2016 Remember back in August, when Bank of England chief economist Andy Haldane was branded "irresponsible" after he suggested he'd rather invest in property than put money into a pension scheme? Well, it seems the nation's millennials agree with him, after a study found saving for a home is three times more important to them than putting [...]