Anything invested in stocks and shares would likely have seen a terrible bounce over the past year since the collapse of Lehman Brothers, followed by the FTSE 100 reaching a high this October.

Despite that positive news, there are still plenty of concerns that the UK could fall into a deeper recession, so things could possibly get worse.

In the meantime, the normal savings vehicles for pensioners are under pressure, with most savings accounts only marginally over the Bank of England’s base rate.

And offshore accounts, of course, still fall under HMRC tax rules, which means the fall in returns from offshore banking mean the tax savings can be pretty slim.

What is really interesting is the observation that savers have become investors, as savers are pushed into fixed term bonds for 2-5 years.

Does this mean that bonds present a safe haven for returns?

Certainly in the short term, but do be careful – if we really are part-way through a double-dip recession, then rampant inflation in the near future could be a very real danger, which could soon make those fixed-rate bond deals look quite low indeed.

The legalities are just being drawn up, but there is a good chance that the deals may start to take place throughout 2009.

Invest in schools through private finance initiatives

UK local authority pension funds officials have been in discussions with a quasi-government body about the prospect of investing in the building of UK schools through private finance initiatives (PFIs).

A spokeswoman for Partnerships for Schools, a quasi-government body created to manage the building of schools through PFIs, said it has been approached by local government pension fund advisers to consider whether they would be willing to include pension fund assets as an investment route for the building of schools.

I see here they mention that half of the 39% of the participants in the survey, saying that they did not have a pension in place are under 18 years old.

While I think it might be a good idea to have something small in place, it is not surprising to see under 18’s without a pension. After all, which teenager is going to miss their big night out with friends to put £40 into a pension fund, that after inflation and a few years, will be worth next to nothing!

Pensions are old

In a survey of 2,000 adults, Fairinvestment.co.uk has found that 39 per cent do not have a pension plan in place, and 20 per cent of those with a pension have had to reduce their contributions or stop paying into it since the credit crunch began

Nearly half of the 39 per cent surveyed who admitted to not having a pension in place were under the age of 18.

It is good to see that some employers actually respect their employers and will do everything in their power to ensure the likes of pensions stay as stable as possible for the future.

It would be even better to see a few other major players in employment follow BAe Systems’ example.

Follow BAe Systems’ lead on pensions

Unite, the UK’s biggest aerospace and engineering union, today (Monday) welcomed BAe Systems’ announcement that it will not be changing any benefits or asking workers to increase their contributions.

This good news comes despite an increase in deficit of the BAe pension scheme.

Britain has had a fairly stable railway service for a number of years, so its no wonder why the second largest union got concerned when it heard about threats within the railway employment, regarding pensions.

The union will be presuring workers to vote for industrial action, most of the 7,000 workers are expected to vote in favour.

Railway pensions under threat

Britain’ second largest rail union is urging 7,000 Network Rail workers to vote in favour of industrial action.

The Transport Salaried Staffs’ Association has opened a ballot over strike action, warning of “widespread disruption” if it goes ahead.

Many businesses are worried that pension schemes could have more of a negative affect on their business, than a positive one.

This comes after statistics revealed that around 90 percent of companies expressed they were worried about the affect pensions schemes would have on their business.

Fear of pension scheme’s

Nine out of 10 companies are worried about the impact their pension scheme will have on their business, research showed.

Around 90% of firms that still offer a defined benefit pension said they were concerned that the scheme’s trustees would ask them to increase their contributions to it at a time when they can least afford it.

Several civil aircraft manufacturers have began to see a slow down in their revenue thanks to the uncertainty and insecurity that surrounds the pension markets.

The current uncertainty has led to companies such as Rolls Royce loosing huge chunks of their original share value.

Rolls Royce feel the wrath of pension deficit

Rolls-Royce lost 12p to 321¾p amid worries that positive full-year results on Thursday would be ruined by a widened pension deficit and uncertainty over future demand for civil aircraft.

Dennis Jullens, a UBS analyst, reiterated “sell” advice with a 282p price target saying that although the aero-engine maker has moved much of its pension assets out of equities, there is a rump exposure that could drastically widen a pension funding gap.

The property market saw a slight recovery in January, with a slight rise in house value throughout the month, and the Pension sector is seeing a similar positive outlook.

January saw The Pension Protection Fund announce their deficit decrease by £4bn, now standing at £191bn.

Pension deficits retreat

The position of the UK‘s private sector, final salary, pension schemes improved slightly in January.

The Pension Protection Fund (PPF) said their collective deficit shrank from £195bn in December to £191bn.

Pension buy outs slow down

The U.K. pension buyout market will slow this year despite record growth in 2008, according to an analysis by Aon Consulting.
The burgeoning bulk annuities market rose in terms of both the value and number of deals in 2008, with 273 deals worth £8.2 billion ($12.1 billion), up from 259 deals worth £2.8 billion in 2007.