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What on earth has been going on in Italy and what does it mean for you? Perks of a park: Will more national parks across Britain be good news for homeowners? Trump’s tariffs explained: What are they, how has the world reacted and what are the implications for Britain and global trade? 210bn pensions timebomb: Two-thirds of final salary schemes are now in the red By Hugo Duncan For Dailymail.
Two-thirds of pension schemes in the UK have black holes putting the retirement plans of millions of workers at risk. 210billion, according to the Pension Protection Fund. 4 per cent of the 5,588 pension pots monitored by the PPF, the industry lifeboat that protects savers if their company goes under. The figures fuelled fears over the health of private sector pensions in the UK following the collapse of companies such as Carillion and BHS with huge black holes in their retirement schemes. While the PPF steps in to ensure savers do not lose everything if their scheme collapses, it typically pays members only 90 per cent of what their nest eggs were worth. Hedge funds prey on Sky: Wall Street vulture takes 1. With two-thirds of schemes in deficit it is inevitable there will be more insolvencies and more schemes ending up in the PPF.
When firms are doing well they should do more to deal with the holes in their pension funds. Instead of prioritising dividend payments they should prioritise pension funds. According to the consultancy, 41 of the FTSE100 firms could have plugged the gap in their pension schemes in full with a payment worth up to one year’s dividend. We are going to get other cases like Carillion and BHS where firms go bust and everyone will ask where was the regulator and where were the pension trustees.