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Budget is death knell for final salary schemes, says Hargreaves

Hargreaves Lansdown says the Budget measure to restrict tax relief on pension contributions for higher earners is the death knell for final salary pensions.

Head of pensions research Tom McPhail says company directors will no longer be motivated to provide burdensome pension schemes to employees.

He says: “Just about the only reason that company directors have been willing to tolerate the continued burden on their business of funding a final salary scheme has been one of self-interest – they get to share in the benefits of the scheme. The government proposes to remove that motivation.

“Any employer running a final salary scheme is likely to give up at this point. Your senior execs have gone from enjoying a tax break on their own contributions, to a situation where they not only lose their own tax relief, they also have to pay tax on their employer’s contributions. Given that it is going to cost them an average of £10,600 a year, it is a fair bet that many of them will just shut their final salary scheme down and walk away.”


Active funds underperform in bear markets

The majority of active American fund managers have underperformed benchmarks across all categories over the past five years, according to a report by Standard & Poor’s (S&P) Index Services. Results for the Standard Poor’s Index Versus Active (Spiva) scorecard revealed that between 2004 and 2008, the S&P 500 outperformed 71.9% of actively managed large cap […]

Analysis: Is this the start of a deflationary spiral?

In January and February, the word “deflation” was much spoken in the corridors of the City. With stockmarkets hovering around historical lows and sterling still plunging, some feared Britain could go the way of Japan in the 1990s.Today deflation arrived, as figures revealed the retail prices index fell by 0.4% in March against the same […]

Japan 2017 Outlook: Abenomics 2.0

By Chris Taylor, head of Japanese Equities, Neptune Abe, having reinforced his political position domestically, will most likely hold off any further major policy enactments until after president Trump has settled into the White House and enacted some of his own. Then a relaunch of the Three Arrows programme is likely, or Abenomics 2.0, including […]


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