Link to the article: Channel 4 News
By Channel 4 News
Pension funds launch a scheme aimed at rebuilding workplace confidence in pensions and making them understandable.
The pension quality mark is being awarded to schemes which meet a range of criteria.
The annual contribution must equal 10 per cent or more of an employee's salary, with at least six per cent of that coming from the employer.
Management charges should not exceed 1% of the total value of the fund.
A number of big companies, including Marks & Spencer, Kellogg's and the computer giant IBM, were awarded the quality mark today.
Samira Ahmed spoke to Nigel Peaple, director of policy at the National Association of Pension Funds, which is launching the scheme.
Showing posts with label pensions. Show all posts
Showing posts with label pensions. Show all posts
Monday, 21 September 2009
Friday, 29 May 2009
Lifestyle annuities hit record levels
Link to the article: Channel 4 News
By Channel 4 News
Quantitative easing by the Bank of England is forcing more people to consider annuity products that are linked to lifestyle, a consultancy firm said today.
The enhanced annuity products – which are used to convert pension pots into a fixed income – will reach total sales of £1.8bn this year, according to Watson Wyatt.
While customers have traditionally taken standard annuities solely linked to the life expectancy of their gender, the last 12 months have seen a record rise in the numbers of enhanced annuities being agreed.
Enhanced annuities pay more than conventional annuities because they take into account life expectancy reducing factors such as: whether you drink, smoke, where you live, or even if you have a risky occupation.
The pension company effectively gambles that, for example, 20-a-day pensioners will not live as long as pensioners who regularly exercise, so agree to pay out more annually for an unhealthy lifestyle.
Watson Wyatt say the total value of enhanced life annuities sold in the first quarter of this year was up by nearly 10 per cent on the same period last year, at £443m.
They say the reduction in gilt yields, brought on by the Bank of England’s decision to begin quantitative easing, has reduced annuity rates, forcing people to consider how to get the most out of their retirement income. This has led record numbers to look at enhanced annuities.
You are eligible for an enhanced annuity if you meet the requirements set by your pension provider. They will look at your health, where you live and if you have a history of illness.
By Channel 4 News
Quantitative easing by the Bank of England is forcing more people to consider annuity products that are linked to lifestyle, a consultancy firm said today.
The enhanced annuity products – which are used to convert pension pots into a fixed income – will reach total sales of £1.8bn this year, according to Watson Wyatt.
While customers have traditionally taken standard annuities solely linked to the life expectancy of their gender, the last 12 months have seen a record rise in the numbers of enhanced annuities being agreed.
Enhanced annuities pay more than conventional annuities because they take into account life expectancy reducing factors such as: whether you drink, smoke, where you live, or even if you have a risky occupation.
The pension company effectively gambles that, for example, 20-a-day pensioners will not live as long as pensioners who regularly exercise, so agree to pay out more annually for an unhealthy lifestyle.
Watson Wyatt say the total value of enhanced life annuities sold in the first quarter of this year was up by nearly 10 per cent on the same period last year, at £443m.
They say the reduction in gilt yields, brought on by the Bank of England’s decision to begin quantitative easing, has reduced annuity rates, forcing people to consider how to get the most out of their retirement income. This has led record numbers to look at enhanced annuities.
You are eligible for an enhanced annuity if you meet the requirements set by your pension provider. They will look at your health, where you live and if you have a history of illness.
Friday, 27 February 2009
Brown angry over pension
Link to the article: Channel 4
Last Modified: 27 Feb 2009
By: Victoria Macdonald
A leading Tory MP has called for the Treasury minister Lord Myners to step down amid the growing row over the multi-million pound pension deal awarded to former Royal Bank of Scotland boss Sir Fred Goodwin.
The Prime Minister Gordon Brown called the package 'unjustifiable and unacceptable', again insisting he was ready to take legal action to claw some of it back.
So far, Sir Fred has refused, insisting that ministers had approved it.
Government lawyers are now examining the scope for any legal clawback of Sir Fred's pension. With their eye in particular on whether the RBS Board was fully informed of the discretionary nature of the payment.
But the Conservatives said the blame lay at the doors of both parties and wratched up calls for Lord Myners to resign.
Last Modified: 27 Feb 2009
By: Victoria Macdonald
A leading Tory MP has called for the Treasury minister Lord Myners to step down amid the growing row over the multi-million pound pension deal awarded to former Royal Bank of Scotland boss Sir Fred Goodwin.
The Prime Minister Gordon Brown called the package 'unjustifiable and unacceptable', again insisting he was ready to take legal action to claw some of it back.
So far, Sir Fred has refused, insisting that ministers had approved it.
Government lawyers are now examining the scope for any legal clawback of Sir Fred's pension. With their eye in particular on whether the RBS Board was fully informed of the discretionary nature of the payment.
But the Conservatives said the blame lay at the doors of both parties and wratched up calls for Lord Myners to resign.
Thursday, 26 February 2009
Pension 'obscene'; further bailout
Link to the article: Channel 4
Last Modified: 26 Feb 2009
By: Gary Gibbon
Former RBS chief Sir Fred Goodwin will not be handing back some of his pension deal as Gordon Brown says he will take legal action if necessary.
The news comes as the bank was offered billions more in taxpayers money to keep it afloat.
Sir Fred Goodwin, the man blamed for the downfall of the Royal Bank of Scotland, has pocketed a retirement package of £693,000 per year that critics called "eye-watering" and "obscene".
On the day it revealed the biggest annual loss in British corporate history, more than £24bn, RBS has now promised sweeping changes, including insuring against any further losses.
Interview: Stephen Hester
RBS chief executive Stephen Hester offers his view on the bank's toxic assets.
Interview: Stephen Timms
Stephen Timms, , financial secretary to the treasury, responds to claims that the government had been made aware of, and consequently signed off, Sir Fred's pension plan.
Last Modified: 26 Feb 2009
By: Gary Gibbon
Former RBS chief Sir Fred Goodwin will not be handing back some of his pension deal as Gordon Brown says he will take legal action if necessary.
The news comes as the bank was offered billions more in taxpayers money to keep it afloat.
Sir Fred Goodwin, the man blamed for the downfall of the Royal Bank of Scotland, has pocketed a retirement package of £693,000 per year that critics called "eye-watering" and "obscene".
On the day it revealed the biggest annual loss in British corporate history, more than £24bn, RBS has now promised sweeping changes, including insuring against any further losses.
Interview: Stephen Hester
RBS chief executive Stephen Hester offers his view on the bank's toxic assets.
Interview: Stephen Timms
Stephen Timms, , financial secretary to the treasury, responds to claims that the government had been made aware of, and consequently signed off, Sir Fred's pension plan.
Wednesday, 25 February 2009
Battle for the Royal Mail's future
Link to the article
Last Modified: 24 Feb 2009
By: Jenny Wivell
Postal workers protest as the government says a partial sell off is the only way to save their pensions.
Postal workers are demonstrating in Westminster this lunchtime against government plans to sell off one third of the Royal Mail.
But the government insists that selling off 30 per cent of the Royal Mail is the only way to protect the pension scheme, which its trustees reportedly say is massively in deficit.
The row has been intensified by the publication of a letter warning staff that they face having their pensions slashed unless the part-privatisation goes ahead.
But with more than 140 Labour MPs set to vote against the plans, Gordon Brown may face the largest rebellion of his premiership over the measure.
Pat McFadden
Samira Ahmed is joined from Westminster by the postal affairs minister, Pat McFadden.
Last Modified: 24 Feb 2009
By: Jenny Wivell
Postal workers protest as the government says a partial sell off is the only way to save their pensions.
Postal workers are demonstrating in Westminster this lunchtime against government plans to sell off one third of the Royal Mail.
But the government insists that selling off 30 per cent of the Royal Mail is the only way to protect the pension scheme, which its trustees reportedly say is massively in deficit.
The row has been intensified by the publication of a letter warning staff that they face having their pensions slashed unless the part-privatisation goes ahead.
But with more than 140 Labour MPs set to vote against the plans, Gordon Brown may face the largest rebellion of his premiership over the measure.
Pat McFadden
Samira Ahmed is joined from Westminster by the postal affairs minister, Pat McFadden.
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