View more on these topics

PWC offers £30bn hope for pension liabilities

Defined-benefit pension liabilities may have been overstated by up to £30bn, says PricewaterhouseCoopers.

It says new mortality tables for self-administered pension schemes, issued by The Actuarial Profession, show that life expectancy for scheme members is less than predicted by the insurance-company-based tables used by many schemes for accounting and funding assumptions.

Failure to allow for this difference would lead to an overstatement of total DB pension liabilities by £30bn, it says.

However, PWC director Richard Giles warns that rather than “blindly adopting the new data as fact, companies and trustees should assess schemes individually to ensure they make appropriate accounting and scheme-funding decisions”.

He says huge sums are at stake and cash-strapped firms should ensure that they use their capital in the most effective way.

Hargreaves Lansdown head of pensions research Tom McPhail says: “Anything that eases pressure on DB schemes has to be seen as good news, so if PWC is right, I am sure that employers will welcome the easing of funding pressures that this should bring.”


Toxic fears holding back investment in banks

The Investment Management Association has told MPs that its members are not prepared to invest in bank reconstructions as they believe institutions have yet to fully write down their exposures to toxic assets.

Cash clash over offshore firms

Life companies that are helping international advisers earn over 10 per cent commission from bond sales are damaging the offshore industry as well as their onshore brands, says a leading offshore adviser.

Bonds going bust? Not so fast….

In recent months bond bears have been reinvigorated, and market commentary suggesting “the end of the bond (bull) market is near” has become commonplace. We think these comments are premature. Explaining the global government bond sell-off October has seen renewed pressure on global government bonds, initially provoked by a Bloomberg article suggesting that the ECB […]


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