Pension saving will have to increase by 6%
February 27, 2008
Upto 3 million people will have to increase the amount they are saving for a pension fund by upto 6%. This is because of an impending review of the assumptions pension companies make by The Board for Actuarial Standards. They are expected to conclude that people will have to contribute more to their pension funds themselves due to a longer life expectancy. Those not in final salary pension schemes will have to foot the shortfall themselves, making saving for your pension more expensive.
Worryingly, the average pension pot in the UK is just £25,000 with saving ratio at a 47 year low.
Public sector pensions to cost us £40,000
February 26, 2008
Public sector pensions could cost each UK household £40,000, according to the tax payers alliance. They cite the NHS pension fund as an example, which has 8,500 retired employees on an annual pension of £33,000. Controversially they are calling for the age of retirement for public sector workers to be brought in line of those in the private sector.
There has also been concerns about the widening gap between the final salary pension schemes offered in the public sector and the less generous schemes offered to the majority of those in the private sector. However public sector workers tend to receive much lower annual increases in salary than those in the private sector. In some instances, these have been lower the the annual inflation rate, leading to what many would call a pay cut.
Norwich Union change deal plan
February 22, 2008
The pension annuity department at Norwich Union have changed the way that annuities are offered. No longer will they give over 30% of initial fees within the first year having had their fingers burnt by recent customer trends.
Pension rates dropping
February 22, 2008
Gordon brown has said that the number of national pensions is dropping and has done consistently since 2002.
Annuity rates update
February 19, 2008
Norwich Union have recently improved their annuity rate offerings to retired people of 60 plus. Its worth checking it out.