Private sector pension schemes show small surplus
The latest figures from the Pension Protection Fund, the government appointed scheme to secure underfunded employer pension schemes, shows that there is a surplus of £300 million in UK schemes. However, this surplus figure is slightly misleading because if you take the schemes which are underfunded on their own, the figure actually stands at £73.3 billion which is down from £79.5 billion at the end of February.
It is interesting to see that the overall position has improved dramatically over the last few months although the position of schemes which are underfunded still has some way to go to reach parity. The pressure on the Pension Protection Fund is growing and will grow for some time because the economic situation has seen many assets fall in value even if there has been a slight increase over the last few months.
More and more it is becoming evident that the UK pension industry needs a major shakeup although how and when this will happen remains to be seen. There is no doubt there is an appetite to make changes for the future although ultimately it would cost billions upon billions of pounds, and funding is very tight in the public sector and the private sector at this moment in time.
Share this..
Related stories
Will an increase in the pension age really make a difference?
Conservative Party proposals to increase the age of retirement in the UK to 66 years of age, but not before 2016, have received a mixed welcome across the country. However, while some people are concerned about the fact they will have to work longer before they receive their state pension, the harsh reality for many in the UK is that the state pension is no longer enough to live on and more and mo...
Read MoreIs there still an elitist system at the Royal Bank of Scotland?
Today's announced that Royal Bank of Scotland will effectively be downgrading the company's final salary scheme and capping pension payments in the future has led to claims there is still very much an "us and them" system at the bank. While the everyday workers at Royal Bank of Scotland are set to lose out on their future pension payments, the new crop of directors parachuted in by the UK governme...
Read More'Start planning now' for overseas retirement, says expert
Pensioners planning to retire overseas need to start making financial plans now, it has been claimed. According to a poll conducted by Scottish Widows, more than one-third of Britons are planning to leave the UK when their pensions come through. This is expected to swell the numbers of retirees living abroad to 3 million by 2050, as pensioners leave the hustle and bustle of their native country be...
Read MoreRoyal Bank of Scotland announces changes to final salary pension scheme
The Royal Bank of Scotland has today announced significant changes to the company's final salary pension scheme which will see benefits reduced in the future. This comes at a time when the UK government appears to be placing more pressure upon UK banks to control their cost bases and give taxpayer's better value for money, where taxpayer's money has been used to acquire shares. New chief executive...
Read MoreOver 55s withdraw £4.7 billion under new pension freedoms
04/11/2015 Figures from the Association of British Insurers (ABI) have shown that the over 55s have withdrawn £4.7 billion under the new pension freedoms introduced in April. There have been 166,700 cash lump sum payments worth £2.5 billion, working out to an average payment of just under £15,000. There has also been £2.2 billion paid out via 660,000 income drawdown payments, with an av...
Read More