Hints and tips:
...The losers from inflation are people on any kind of fixed income — such as annuities — and householders who rent rather than own....
...So, in a CDC, the trustees, whose sole responsibility would be to manage the fund in the interests of members, would have to adjust promises from time to time in light of experience....
...About two-thirds of trust-based schemes, or those overseen by trustees, continued to target annuity purchase as the default option for their members, the survey found....
...In the case of defined benefit or “final-salary” pensions, however, it became apparent by the 1990s that most trustees had vested interests in the assets held in trust....
...There has also been a lot of work based on designing products that help savers make better decisions – from customised target-date funds to automatic escalation in salary deferrals....
...occupational pension scheme for 2012; focus on defined contribution schemes; and dealing with the changing shape of the pension buy-out and annuities market....
...Others in the industry say syndicated deals could offer investors more protection and lead to different firms taking on annuities according to the age, salary or geographical location of a scheme member....
...“We are living through the first wave of the wind-down of final salary schemes,” says Ros Altmann, a professional adviser and trustee....
...industry and how you should be planning for the future....
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