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...The Debenhams deal has been made possible largely thanks to a substantial recent improvement in funding positions for defined benefit pension schemes, which promise members a pension for life — typically...
...Officials briefed on the proposals said the plan for geographical disclosure would apply to defined contribution funds, overseen by the FCA, rather than defined benefit funds, which are regulated by The...
...Such groups might have the benefit of a trailing wind from policymakers: Labour aims to double the size of the UK’s co-operative and mutual financial services sector, according to its financial services...
...These “buyouts” — of pension plans and the assets backing them — are regarded as the gold standard for safeguarding benefits....
...The House of Commons work and pensions committee said on Tuesday that just 4 per cent of the 5,100 defined-benefit pension schemes in the private sector were open to new joiners last year, down from 11 per...
...But UK business has been brisk: rising interest rates have transformed funding levels in defined benefit pension schemes and enabled companies to consider offloading future liabilities....
...The proposals come after the funding positions of defined benefit retirement plans have improved significantly over the past 18 months due to rising interest rates making it cheaper for the schemes to meet...
...workers, who tend to have defined benefit plans, cite pensions as a key reason they stay on the job....
...So-called defined benefit pension funds are already subject to disclosure requirements on their asset allocation....
...The pension tax change is expected to be closely watched by other corporate sponsors of “defined benefit” plans against the backdrop of much-improved funding positions....
...“Those with big defined benefit pensions or property income might be willing to play a bit faster and looser with their investment portfolio,” said AJ Bell’s Laith Khalaf....
...The contrast between the defined contribution schemes of private companies and the inflation-linked defined benefit schemes of the public sector has become increasingly stark....
...Assets invested in the fund via retirement accounts such as defined contribution plans would be “generally expected” to be transferred into Pimco’s Government Money Market Fund, depending on the terms of...
...information and maintain trust in banking services,” he predicts....
...The regulator estimated that the combined value of assets for 5,100 company defined benefit plans fell by around £425bn over 2022, from £1.79tn to £1.36tn — equivalent to a 24 per cent drop....
...Mutual funds got another boost in the 1980s, as big companies started shifting away from defined benefit pensions....
...Crucially, since the global financial crisis, returns have been solid....
...“Trusts can put an element of protection around funds that you want to ultimately benefit children or other dependants,” said Kenny....
...“Many defined contribution scheme members lack the financial education and confidence to choose their own pension provider....
...Portfolios of private assets are being dumped by so-called defined benefit pension schemes — funds offering members a set amount in retirement — as they try to prepare themselves for a buyout by an insurance...
...The Pension Protection Fund announced on Thursday that the levy it collects from eligible “defined benefit” schemes to help cover compensation payments to members of failed company retirement plans will...
...Absolute or bare trusts involve holding the money for the outright benefit of the children, with a fixed provision for when they will be able to receive the money....
...The assets held in overseas trusts will not pass under your aunt’s will so you would need to consider the trust documents or contact the trustees to establish who are the beneficiaries of any trust assets...
...Long-term resident non-doms can currently take steps before reaching the 15-year point to secure some continued benefits of the regime, such as by setting up non-UK trusts....
...Another potential plan was for employers to be given easier access to defined benefit pension fund surpluses to encourage schemes to invest in riskier assets that could help boost the economy....
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