Archive for December, 2008
Pensions in awkward territory
Not good times for the Government or UK pension holders then, who seem to both be in a state of stale mate, with the banks calling all the shots as usual, even though they are funded on a large scale by the tax payers in the first place.
They may rank alongside other unsecured creditors, such as the banks, but put a company into administration and they often become a different beast with the largest seat at the table.
In the build up to a meltdown, though – as the banks start pulling the strings – they are curiously toothless.
Not too bad for pensions
Its good to see that in some places in the UK economy there is some slightly positive activity going on, although its not entirely positive.
Lets face it though, compared to the rest of the worldwide markets, to pull back the amount they have over 12 months can only be a good thing.
Despite a tumultuous 12 months, Britain’s biggest schemes are sitting on a £3bn surplus, having started the year with a £2bn deficit.
Aon Consulting, which has calculated the pension scheme funding, said the swing back into the black will be significant as half of UK companies complete their accounts at December 31.
Pensioners are hit hard
The world seems to just be one big scandal at the moment and the pensioners are loosing out big time, especially with the recent interest rate cuts which will dramatically affect their long term capital.
http://www.wsws.org/articles/2008/dec2008/pens-d15.shtml
A little discussed aspect of the global financial crisis is the devastating impact it is having on pensions. This is particularly acute in Britain. State provision is poor and successive governments have forced workers to rely on occupational pensions, on which half of all British workers depend, private pensions and annuities, and the value of their homes to finance their retirement.
In the last year, the London stock market has fallen by nearly 40 percent and deficits in UK occupational pensions in the top 100 corporations have leapt from £40 billion a year ago to more than £122 billion in October of this year if more realistic estimates of their liabilities are used.
Provident Friends expands
It’s nice to see a few companies can still develop their businesses, especially in the current climate, and with pensions decreasing in value every day, it might be worth while taking their business abroad, especially if they can offer them something extra special!
http://www.moneynews.co.uk/5801/friends-provident-expands-in-asia/
RBS had offered out almost 30 billion shares in a bid to sure up their balance sheets, but investors bought up just 56 million of the above market-value stock – a 0.2 per cent share – leaving the government to buy out the remaining 22.9 billion shares.
UK-listed pensions company Friends Provident has expanded the scope of its business into the Asian market.