Pension crisis coming to UK....

TRUSt_NO_1_2

purch wrote: »

Quality Cut n Paste Research there TrussNo1



:rotfl::rotfl: :rotfl:

You like icons don't you purch.
Do they make you laugh ?

...here's one more suitable to your posts

Try typing some content in between them and your insults once in a while.

jamesd

Anyone who is concerned should act as MikeJones has suggested. If your employer is in financial trouble and you are not retired yet there can be major benefits in transferring a significant portion of your pension fund value out of a defined benefit pension scheme to protect yourself from the possible consequences of a company failure. This is particularly true if you're on track for an above average pension level.

It's also possible to lose a lot of money by getting it wrong. Professional advice is highly desirable in this area.

Those in defined contribution schemes don't face this degree of potential risk, nor do those who have already retired.

EdInvestor

jamesd wrote: »

. If your employer is in financial trouble and you are not retired yet there can be major benefits in transferring a significant portion of your pension fund value out of a defined benefit pension scheme to protect yourself from the possible consequences of a company failure.

What do you think the PPF is for then?

This is particularly true if you're on track for an above average pension level.

Arguably this is only true if your pension is likely to be high - IIRC the PPF only protects pensions worth up to 25k a year.

jamesd

EdInvestor, anyone who is around the higher rate tax level while working and some below it could lose more than 10% of their pension. Depends on salary and what proportion of it they would get. Perhaps 15% or so of people in the eligible schemes, if they have the same income distribution as the working population as a whole. The PPF gives an example of a 60 year old early retiree originally on a £75,000 pension who lost 63% of that pension even though he'd already retired and the PPF is paying out to him.

For those who have retired, "the cap at the age of 65 is set at £30,856.35 This equates to £27,770.72" for those who haven't reached the retirement age of the scheme and get up to 90% of their pension up to the cap. Annual increases in pensions for those who retire are also expected to be lower than is usual in final salary schemes.

Anyone in line for more than that is at risk of losing the money above that limit.

Those with larger possible pensions or those who want to eliminate the risk of having a pension pot with a troubled old employer might consider moving some or all of the pension pot elsewhere to reduce or eliminate those risks. Depends very strongly on their individual position, including how long it is until their scheme's normal retirement age.

TRUSt_NO_1_2

TRUSt_NO_1 wrote: »

.....

Using FTSE as equity price indicator, scheme collective assets have gone down by $73 billion, meaning PPF schemes collectively will now be under water by approx £20 billion, with some of the smaller ones well under water by now.
......

http://news.bbc.co.uk/1/hi/business/7543828.stm

TRUSt_NO_1_2

TRUSt_NO_1 wrote: »

..on 15th July....

Using FTSE as equity price indicator, scheme collective assets have gone down by $73 billion, meaning PPF schemes collectively will now be under water by approx £20 billion, with some of the smaller ones well under water by now.

http://news.bbc.co.uk/1/hi/business/7554016.stm

so does this make the PPF a scaremonger as well ?

TRUSt_NO_1_2

...or are you a scaremonger ?

http://news.bbc.co.uk/1/hi/business/7589291.stm

As I said FTSE at 4000 in 12-17 months...

£2 for a loaf of bread in 2010.

The winter sales will be here in 8 weeks.I remember when it used to be on Boxing Day.Happy Days !

baby_boomer

We don't need the FTSE to drop to 4,000. The crisis is already upon us at 5,600. Pension planning is done on the basis of 7-8% pa growth and the FTSE was 6,900 nine years ago.

Telegraph - Pensions crisis for private sector workers not in final salary schemes

It's the worst situation since the second world war.

Falling shares, dividend cuts and low annuity rates set to go even lower.

Carry on working is the best advice from the experts!

Turnbull2000

Outside of the public sector, do many young people actually bother with pensions these days? I've asked around my department, and there's only two people under 30 (out of 16) who've joined the scheme.

TRUSt_NO_1_2

baby_boomer wrote: »

....Telegraph - Pensions crisis for private sector workers not in final salary schemes.....

Britain facing biggest pensions crisis in half a century as values drop 20pc


By Edmund Conway and Yvette Essen (Daily Telegraph)
..Last Updated: 3:24am BST 30/08/2008

---

Why buy newspapers ??? I posted on 15/7/2008 ....are they asleep on the job ???
==================

baby_boomer wrote: »

We don't need the FTSE to drop to 4,000. The crisis is already upon us at 5,600. Pension planning is done on the basis of 7-8% pa growth

This reminds me of another of my posts some months ago

http://forums.moneysavingexpert.com/showthread.html?t=764395


Just wait until the Yanks go into Pakistan (with us dragged along)...then we will see some serious inflation.