View more on these topics

Buyout bill is £440bn

UK employers would have to pay out £440bn more than the current value of pension assets to honour their pension promises in full, according to latest figures.

The figures were published in the Pension Regulator’s first official review of private sector pension promises which covered 5,800 schemes – 85 per cent of all UK pension liabilities.

The full buyout deficit is the funding position of schemes relative to the cost of transferring all risks to an insurer. Companies, which were subjected to the more rigorous FRS17 disclosure regime last year, will be forced to disclose these figures this year.

This has added to criticism, prompted by the introduction of FRS17, that scheme members will be unnecessarily panicked into transferring out of their pensions.

Independent Trustee Services director Terry Monk says full buyout figures are largely irrelevant. He says: “It is very unlikely that an employer will wish to crystallise all liabilities and use capital to pay it all off. The key issue is the ability of employers to fund liabilities for a reasonable time.”

A Pensions Regulator spokesman says: “We are not making any judgements on whether the deficits have increased or decreased and will track these figures. The full buyout figure is not irrelevant and should be used with the FRS17 and S179 figures to give a more complete picture of the state of pension schemes.”


Toll routes

The industry must not be divided into two camps of fees and commission

HSBC leads league for cheapest lending

HSBC was the cheapest mortgage lender for existing borrowers in 2006, according to new research from Defaqto. It found that for standard variable rate mortgages or equivalent, HSBC was the cheapest, followed by Intelligent Finance.

Reit advice

Reits have now launched as an onshore product in the UK, with many predicting that funds of Reits in all shapes and forms will become a key part of many IFA clients’ portfolios.There are many good things about Reits yet what they may invest in ranges wide and far from pubs and prisons to companies […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm