There have been many reports of defined benefit pension schemes, commonly know as final salary schemes, being ‘under stress’ with some being reported as not being able to pay in full what scheme members were promised. This has caused worry for people holding defined benefit (DB) schemes, both at home and abroad, who had planned on enjoying a full and comfortable retirement.
The Emerson scheme has long been closed for all but the most senior employees, yet now they have announced internally that their final 475 active members will cease to accrue any further defined benefit pension rights from April 2016.
We try to keep you updated on the latest in relation to the UK's biggest pension schemes. The Taylor Wimpey scheme has come up with our clients a lot recently. We can confirm that transfer values have NOT been reduced, despite the pension scheme being underfunded at the moment. This means that the long-term liabilities of the scheme (i.e. the need to pay out income to pensioners for life) exceed the funds they actually have in place.
If you have a pension with IBM, whether you're still an active member or have already left service, it's important that you look into your options.
Late last year Tesco wrote to pension members at home and abroad about the significant changes they've made to their staff pension provision, but with the lovely glossy brochure and positive graphics and wording, do you understand what they've really done?
If you are or have been a member of the Kier Group Final Salary Scheme, you will no doubt have recently been notified of the recent changes to the scheme.
We've heard recently that BP are making some changes to their final salary scheme. As an offshore worker though, this is unlikely to greatly affect you. By chance though, just two weeks ago we looked into the BP scheme for an active member, we applied for the usual information and a transfer value and were hugely pleasantly surprised to find the transfer values currently being offered are outstanding, so it's worth looking into now (while the trustees are crunching the numbers like this!)
With oil prices fluctuating constantly and the introduction of VAT in the UAE due in 2018, concerns regarding the economic stability of the region have been on the rise recently. This has raised questions in the minds of investors about whether or not they should invest in the current economic climate.
Although effective Financial Planning rarely involves pulling up your vegetables to see how they’re growing, you may be interested in the thoughts and opinions of our Investment Committee which can be found here in our Weekly Markets Update…
Now that the festive holidays are over and we are back at work our thoughts turn to the year ahead. Prudent financial planning in 2016 can be the first step towards attaining the lifestyle goals you have always wanted to reach. Letting your money grow by itself can only be achieved by articulating your financial plans. If you haven’t already done that, 2016 is a good time to start.