|
|
|
Forgotten your password? | |||||||
EDITOR'S PICKS
NEWS
Pensions deficits 'the result of increased life expectancy'
Solar panels 'mean homeowners have everything to gain'
Pensions deficits 'the result of increased life expectancy'
10/08/2010
 Over the last few years, pensions have been on the top of the agenda. With the government's proposals to increase the retirement age and worries about pension deficits, there probably has never been as important a time to save for old age.The Joseph Rowntree Foundation reckons a single person in Britain needs to earn at least £13,900 a year before tax in order to afford a basic, but acceptable, standard of living. Yet, a recent survey from Prudential found that around a third of people (32 per cent) who retire this year will have an income below the poverty line of £14,000 a year. Some 42 per cent of women over 65 will have incomes below this threshold compared with 33 per cent of men. But, companies are trying to ensure people have money when they retire. Research from LCP released last week revealed that FTSE 100 companies paid an unprecedented £17.5 billion into their defined benefit schemes in 2009, which was 50 per cent more than the previous year. Danny Cox, head of advice at Hargreaves Lansdown, said increased life expectancy is the main reason for pension deficits, particularly when it comes to final salary pension schemes. "As life expectancy goes up, the cost of running these schemes goes up. "Final salary schemes have to pay out pensions for longer, so therefore it is more expensive. You've got the increasing costs of running those types of schemes and at the same time you have ten years of poor performance in the equity markets." Increased regulation also isn't helping the situation, Mr Cox suggested. He added: "Schemes closing to new members are more likely to run into deficit because it is just a less healthy scheme. There are fewer people paying in year-on-year and there is nobody joining. So ultimately the costs go up because of that." Posted by Jez Walters  |
Related Finance News
Win £250 cash with Cheapflights.co.uk
|
Information LINK Choose your free brochures today!
|
5 Free Lines in the next National Lottery and EuroMillions Draw
|
This offer is open to UK residents only. You must be at least 18 years of age or older to enter. By registering and entering your details with activeyou.co.uk you consent to receive information and promotions from activeyou.co.uk, our Clients and our Partners. These promotions are selected and based on the details you provide us with, you can unsubscribe at anytime. You also agree to our standard terms & conditions.
Copyright © 2009 activeyou.co.uk. All rights reserved.
Special Terms & Conditions
|
Admin|
How It Works |
Privacy Policy |
Terms |
About Us |
Affiliates |
Site Map |
Links |
Unsubscribe |
Contact Us
© Activeyou-enter competitions to win cruises, equity release, home improvements and laser eye surgery |
||
|
||
Site Protected By Copyscape- DO NOT Copy |
||
|
This page took 0.1719seconds to load
|
