PIC will invest in Ecobank common equity, Ecobank stock forecast 2012-2013 : The Public Investment Corporation (PIC), on behalf of Government Employees Pension Fund (GEPF), is pleased to announce that it will invest $250million (about R1.7billion) in the common equity of Ecobank Transnational Incorporated, the parent company of the Ecobank Group, the leading independent pan-African banking group with a presence in 32 African countries.
This investment will represent the PIC’s first major direct investment outside of South Africa and is in line with GEPF’s investment strategy that has identified Africa (excluding South Africa) as the next frontier for investment growth.
The transaction will bolster Ecobank’s tier one capital and further enhance its ability to grow its business across the African continent. The $250 million share purchase will be affected by the issuance of 3,125,000,000 shares in Ecobank representing 19.58% of the total outstanding number of shares. Following this investment, the PIC is expected to take a seat on the board of Ecobank.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today
For the latest updates PRESS CTR + D or visit Stock Market news Today
Showing posts with label pension plans. Show all posts
Showing posts with label pension plans. Show all posts
Saturday, April 21, 2012
Wednesday, March 21, 2012
Analist Budget 2012, Osborne cuts to the top rate of income tax
Analist Budget 2012, Osborne cuts to the top rate of income tax : George Osborne has announced cuts to the top rate of income tax - and an increase in the amount of money people can earn before they start paying tax. The chancellor said the 50p rate was uncompetitive, raised "next to nothing" and would fall to 45p next year.
Four million pensioners will be £83 a year worse off after George Osborne took £3 billion out of income tax allowances for older people in his Budget.
In the Budget, the Chancellor insisted that nobody would lose any money, but inflation means pensioners will see their household budgets squeezed in future years. More than four million people will be £83 worse off by 2014, while 360,000 people aged 65 will lose £285.
Another measure to create a flat rate single-tier pension is likely to redistribute income from around five million of the higher earning pensioners to seven million of the poorest. This could cost between £80 per year for current pensioners and £197 per year for future pensioners. below Budget 2012, instant reaction
Dave Prentis, general secretary of Unison union
“The chancellor’s Budget has given a helping handout to his rich friends in the City and delivered a slap in the face to the unemployed and low-paid families. Osborne should be delivering policies to get the 2.67m unemployed people back into work and economically active. Instead, the government’s cuts agenda is making the situation worse by adding to those numbers month by month.’’
Institute of Directors
“A reduction in corporation tax is a very positive step, but we would still like to see a commitment to move to 15 per cent by 2020. This would make us truly competitive . . . While any tax reduction is welcome, the chancellor has not done enough to free business from the burdens and barriers that are holding economic growth back. Businesses dearly want the opportunity to invest, create and build, but George Osborne must go much further if he wants to fire up the engines of the economy. There was a bold move on corporation tax, but in the bigger picture this is still not far enough or fast enough.”
Brendan Barber, TUC general secretary
“We needed a Budget that looked to the future and made jobs – particularly for young people – the national priority. Instead we have got a Budget for the rich by the rich. One minute the chancellor said he found tax avoidance morally repugnant, the next he rewarded it by cutting income tax for the richest 1 per cent – with precious little relief for hard-pressed families on ordinary incomes. Treasury figures show that those on low and middle incomes will do worse than those higher up the income scale.”
Andrew Ledger, Barclays
“The TV industry has been crying out for tax credits for drama production for years. Hopefully this will be the first step in putting Britain back on the map as a cost-effective destination for drama production. That should tempting more overseas production companies to shoot dramas here in the UK, just as we’ve seen happen in film.”
Bob Crow, RMT general secretary
“The tinkering at the lower end of the tax scale will be swallowed up by increased utility bills and travel costs while the rich will just engage another army of accountants and lawyers to dodge the so-called clampdown on tax avoidance by inventing another barrage of scams.”
British Bankers’ Association
“The change in bank levy was expected once the corporation tax cut had been announced. The change corrects what would otherwise be a shortfall in the bank levy, in order to raise the fovernment’s target of at least 2.5 billion pounds each year.”
Brian Hilliard, economist at Société Générale
“The headline-grabber is the cut in income tax. He said the higher rate didn’t raise any extra money anyway, so economically he can justify it but politically I think it’s a bit of a gamble.
“I’m a little bit surprised to see them lower the claimant count forecast, so they are a little bit more optimistic about employment and unemployment, which needs to be looked at.”
Ross Walker, RBS
“All very much as expected, barely any changes at all to the growth and borrowing numbers. “All very much as expected on the macro side . . . and thus far the micro policy changes are all very much as had been leaked. It looks from a market point of view to be fairly neutral.”
Howard Archer, chief economist for eurozone and the UK at IHS Global Insight
“This is of welcome relief to the chancellor and spares him having to tighten overall fiscal policy further. Indeed, the chancellor has indicated that the Budget is fiscally neutral over the next five years. “Near-term GDP growth forecasts look realistic, but longer-term forecasts may prove hard to achieve.”
Melanie Ward, head of public affairs at ActionAid
“We warmly welcome the government’s continued protection of the aid budget. UK aid saves lives and, despite these difficult economic times, we can all be proud that we are not walking away from our commitment to the world’s poorest people. The government deserves real credit for this.’’
Philip Shaw, chief economist at Investec
“The borrowing numbers, excluding the Royal Mail effect, do actually look slightly better over the next five years, so in terms of numbers there’s been, I guess, a modest improvement in the budgetary situation compared with the OBR forecast at the autumn statement. “The devil is always in the detail rather than the chancellor’s speech.”
George Buckley, chief UK economist at Deutsche Bank
“The changes are fiscally neutral. There’s going to be a lot announced but there’s probably not much in terms of overall differences in the fiscal stance.
“Growth was revised up slightly for 2012 to 0.8 per cent (from 0.7 per cent) – while this is the first upward revision we have seen in quite some time (since 2009) it is clearly very modest.”
Sue Foxley, Cluttons property consultants and estate agents
“A 7 per cent stamp duty level would hit Londoners hard. There is a massive shortage of family homes in London’s villages and given price growth expectation, growing demand will push average three and four bedroom family homes in many areas such as Islington into the top stamp duty tier within a year or two, making it even harder for families to commit to staying in the city.
“London’s global competitiveness relies on attracting the highest-skilled professionals, whether from the UK or elsewhere in the world. The mansion tax would add to the already substantial costs for professionals choosing to work and raise families in London.
“This is bad news for London’s long-term economic prosperity and, therefore, the fortunes of the wider UK.”
Tim Martin, chairman of JD Wetherspoon
“We are disappointed that excise duties on alcohol will increase by 2 per cent beyond the rate of inflation, since the British people are now paying 40 per cent of all the alcohol duties in Europe.
“We are also very disappointed that pubs will continue to pay 20 per cent VAT on food when supermarkets pay nothing, enabling them to cross subsidise their prices for alcoholic drinks.”
James Lowman, Association of Convenience Stores
“Sunday trading relaxation will present artificial growth in large stores and supermarkets paid for by loss of trade in local shops up and down the country.
“The government is undertaking this measure without any consultation after twice rejecting the idea last year. This will cost small businesses more than £480m and wipes out any hopes local shops had for a sales boost from the Olympics.”
Richard Wilson, Tiga (The Independent Game Developers’ Association)
“Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry.
“Tax breaks for games production will ensure that the UK remains at the forefront of video game development. It will also help to rebalance the UK economy away from an over-reliance on financial services towards a high skill, R&D intensive and export focused industry.”
Russell Quirk, founder of online estate agents Emoov.co.uk
“Few parts of the Budget smacked of such naked tokenism as the new top rate of stamp duty. With such a huge disparity in property prices across the UK, it will inevitably turn into a tax on London and the South East.
“It may be a clever wheeze to mitigate the political fallout from the abolition of the 50p tax rate. But ultimately this ill-thought-out measure is just another tax on aspiration, and a levy on success.”
Simon Denham, CEO of Capital Spreads
“The banker bashing continues. Banks will be in the loser’s camp as they will not benefit from the cut in corporation tax. An extraordinary manoeuvre when it’s precisely them who we need to rely on to help boost credit to business and individuals.”
Chris Cummings, TheCityUK
“The UK continues to act as a global hub for financial services, which contributes annually more than 60 billion pounds in tax to the Exchequer.
“With growth now estimated at 0.8 per cent this year the chancellor must ensure we push ahead to strengthen our economy.”
Colin McLean, SVM Asset Management
“I think the inflation targets for next year look credible, more so than the OBR forecasts for growth.”
For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Four million pensioners will be £83 a year worse off after George Osborne took £3 billion out of income tax allowances for older people in his Budget.
In the Budget, the Chancellor insisted that nobody would lose any money, but inflation means pensioners will see their household budgets squeezed in future years. More than four million people will be £83 worse off by 2014, while 360,000 people aged 65 will lose £285.
Another measure to create a flat rate single-tier pension is likely to redistribute income from around five million of the higher earning pensioners to seven million of the poorest. This could cost between £80 per year for current pensioners and £197 per year for future pensioners. below Budget 2012, instant reaction
Dave Prentis, general secretary of Unison union
“The chancellor’s Budget has given a helping handout to his rich friends in the City and delivered a slap in the face to the unemployed and low-paid families. Osborne should be delivering policies to get the 2.67m unemployed people back into work and economically active. Instead, the government’s cuts agenda is making the situation worse by adding to those numbers month by month.’’
Institute of Directors
“A reduction in corporation tax is a very positive step, but we would still like to see a commitment to move to 15 per cent by 2020. This would make us truly competitive . . . While any tax reduction is welcome, the chancellor has not done enough to free business from the burdens and barriers that are holding economic growth back. Businesses dearly want the opportunity to invest, create and build, but George Osborne must go much further if he wants to fire up the engines of the economy. There was a bold move on corporation tax, but in the bigger picture this is still not far enough or fast enough.”
Brendan Barber, TUC general secretary
“We needed a Budget that looked to the future and made jobs – particularly for young people – the national priority. Instead we have got a Budget for the rich by the rich. One minute the chancellor said he found tax avoidance morally repugnant, the next he rewarded it by cutting income tax for the richest 1 per cent – with precious little relief for hard-pressed families on ordinary incomes. Treasury figures show that those on low and middle incomes will do worse than those higher up the income scale.”
Andrew Ledger, Barclays
“The TV industry has been crying out for tax credits for drama production for years. Hopefully this will be the first step in putting Britain back on the map as a cost-effective destination for drama production. That should tempting more overseas production companies to shoot dramas here in the UK, just as we’ve seen happen in film.”
Bob Crow, RMT general secretary
“The tinkering at the lower end of the tax scale will be swallowed up by increased utility bills and travel costs while the rich will just engage another army of accountants and lawyers to dodge the so-called clampdown on tax avoidance by inventing another barrage of scams.”
British Bankers’ Association
“The change in bank levy was expected once the corporation tax cut had been announced. The change corrects what would otherwise be a shortfall in the bank levy, in order to raise the fovernment’s target of at least 2.5 billion pounds each year.”
Brian Hilliard, economist at Société Générale
“The headline-grabber is the cut in income tax. He said the higher rate didn’t raise any extra money anyway, so economically he can justify it but politically I think it’s a bit of a gamble.
“I’m a little bit surprised to see them lower the claimant count forecast, so they are a little bit more optimistic about employment and unemployment, which needs to be looked at.”
Ross Walker, RBS
“All very much as expected, barely any changes at all to the growth and borrowing numbers. “All very much as expected on the macro side . . . and thus far the micro policy changes are all very much as had been leaked. It looks from a market point of view to be fairly neutral.”
Howard Archer, chief economist for eurozone and the UK at IHS Global Insight
“This is of welcome relief to the chancellor and spares him having to tighten overall fiscal policy further. Indeed, the chancellor has indicated that the Budget is fiscally neutral over the next five years. “Near-term GDP growth forecasts look realistic, but longer-term forecasts may prove hard to achieve.”
Melanie Ward, head of public affairs at ActionAid
“We warmly welcome the government’s continued protection of the aid budget. UK aid saves lives and, despite these difficult economic times, we can all be proud that we are not walking away from our commitment to the world’s poorest people. The government deserves real credit for this.’’
Philip Shaw, chief economist at Investec
“The borrowing numbers, excluding the Royal Mail effect, do actually look slightly better over the next five years, so in terms of numbers there’s been, I guess, a modest improvement in the budgetary situation compared with the OBR forecast at the autumn statement. “The devil is always in the detail rather than the chancellor’s speech.”
George Buckley, chief UK economist at Deutsche Bank
“The changes are fiscally neutral. There’s going to be a lot announced but there’s probably not much in terms of overall differences in the fiscal stance.
“Growth was revised up slightly for 2012 to 0.8 per cent (from 0.7 per cent) – while this is the first upward revision we have seen in quite some time (since 2009) it is clearly very modest.”
Sue Foxley, Cluttons property consultants and estate agents
“A 7 per cent stamp duty level would hit Londoners hard. There is a massive shortage of family homes in London’s villages and given price growth expectation, growing demand will push average three and four bedroom family homes in many areas such as Islington into the top stamp duty tier within a year or two, making it even harder for families to commit to staying in the city.
“London’s global competitiveness relies on attracting the highest-skilled professionals, whether from the UK or elsewhere in the world. The mansion tax would add to the already substantial costs for professionals choosing to work and raise families in London.
“This is bad news for London’s long-term economic prosperity and, therefore, the fortunes of the wider UK.”
Tim Martin, chairman of JD Wetherspoon
“We are disappointed that excise duties on alcohol will increase by 2 per cent beyond the rate of inflation, since the British people are now paying 40 per cent of all the alcohol duties in Europe.
“We are also very disappointed that pubs will continue to pay 20 per cent VAT on food when supermarkets pay nothing, enabling them to cross subsidise their prices for alcoholic drinks.”
James Lowman, Association of Convenience Stores
“Sunday trading relaxation will present artificial growth in large stores and supermarkets paid for by loss of trade in local shops up and down the country.
“The government is undertaking this measure without any consultation after twice rejecting the idea last year. This will cost small businesses more than £480m and wipes out any hopes local shops had for a sales boost from the Olympics.”
Richard Wilson, Tiga (The Independent Game Developers’ Association)
“Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry.
“Tax breaks for games production will ensure that the UK remains at the forefront of video game development. It will also help to rebalance the UK economy away from an over-reliance on financial services towards a high skill, R&D intensive and export focused industry.”
Russell Quirk, founder of online estate agents Emoov.co.uk
“Few parts of the Budget smacked of such naked tokenism as the new top rate of stamp duty. With such a huge disparity in property prices across the UK, it will inevitably turn into a tax on London and the South East.
“It may be a clever wheeze to mitigate the political fallout from the abolition of the 50p tax rate. But ultimately this ill-thought-out measure is just another tax on aspiration, and a levy on success.”
Simon Denham, CEO of Capital Spreads
“The banker bashing continues. Banks will be in the loser’s camp as they will not benefit from the cut in corporation tax. An extraordinary manoeuvre when it’s precisely them who we need to rely on to help boost credit to business and individuals.”
Chris Cummings, TheCityUK
“The UK continues to act as a global hub for financial services, which contributes annually more than 60 billion pounds in tax to the Exchequer.
“With growth now estimated at 0.8 per cent this year the chancellor must ensure we push ahead to strengthen our economy.”
Colin McLean, SVM Asset Management
“I think the inflation targets for next year look credible, more so than the OBR forecasts for growth.”
For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Sunday, February 12, 2012
new pension scheme maturity calculator
new pension scheme maturity calculator ; For details of the Old and New Pension Schemes and examples of pension calculation, please read csb.gov.hk
tax saving plans for government servant, Employers contributions in NPS account to be exempt from tax, national pension scheme india maturity, new pension scheme j&k, new pension scheme j&k interest calculator, new pension scheme maturity calculator For the latest updates PRESS CTR + D or visit Stock Market news Today
tax saving plans for government servant, Employers contributions in NPS account to be exempt from tax, national pension scheme india maturity, new pension scheme j&k, new pension scheme j&k interest calculator, new pension scheme maturity calculator For the latest updates PRESS CTR + D or visit Stock Market news Today
Wednesday, February 8, 2012
how to Reducing Annuity Rates and Pension Income
how to Reducing Annuity Rates and Pension Income : The use of Quantitative Easing by the Bank of England may result in a 60 basis point reduction in gilt yields followed by annuity rates decreasing by 6% during 2012 and will mean less income for retiring pensioners that must purchase an annuity now.
The decrease of annuity rates due to Quantitative Easing would be in addition to the 11% decrease already experienced by pensioners since June 2011 due to the Eurozone crisis where investments have been moved to safe havens such as UK government bonds or gilts.
Gilt yields fall when demand for gilts increases and as prices increase it reduces the yield which means the return on those assets falls. Annuity providers use 15-year gilts to secure the income for pensioners and as a general rule a 60 basis point reduction in gilt yields will result in a 6% decrease in annuity rates, although there may be a time lag before the changes are implemented by the providers.
Quantitative Easing (QE) was introduced in March 2009 and had the effect of reducing annuity rates by 6% during that year. QE was initiated as a result of the financial crisis requiring the Bank of England to inject money directly into the economy and they are doing this now to meet the Monetary Policy Committee inflation target of 2%. The other method to achieve this target is by setting the bank Rate which is very low at 0.5% and therefore Quantitative Easing is the only way to meet the inflation target.
At the end of 2011 inflation, such as the Retail Price Index (RPI) fell from 4.8% to 4.2% and if this continues to fall at 0.6% per month it is likely to fall below the inflation target of 2%. Therefore the Bank of England is planning to inject £75 billion from February 2012 onwards and possibly up to £100 billion more during the year if required.
The Bank of England intends to use Quantitative Easing to stimulate consumer spending and company investment. By buying government bonds or gilts the overall effect is to reduce the yield so encourage investors to switch from bonds or gilts to other financial assets such as company bonds which in turn will reduce the yield on these assets. This ultimately is expected to reduce the cost of borrowing for both the consumer and business and encourage spending due to the extra money in the economy which will help to increase inflation to meet the 2% target.
Quantitative Easing also has consequences for defined benefit or final salary schemes provided by employers as gilts are used to determine the future funding provisions for these schemes. As the yields decrease a company may find the final salary scheme deficit increases and therefore the company will at some stage need provide extra funds for the pension scheme rather than using these funds for other investments such as employing new people.
The bank of England is using QE to benefit the wider economy but the side effect will be decreasing annuity rates for pensioners that are already suffering from lower incomes due to increasing inflation and QE will further reduce their buying power during their lifetime. To counter these negative factors pensioners can maximise their income if they have medical conditions which could add 20% to 60% to the annuity rate by purchasing an impaired health annuity.
Colin Thorburn is the founder of sharingpensions.co.uk and for expert information about the latest annuity rates and planning for retirement please visit http://www.sharingpensions.co.uk/annuity_rates.htm.
For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
The decrease of annuity rates due to Quantitative Easing would be in addition to the 11% decrease already experienced by pensioners since June 2011 due to the Eurozone crisis where investments have been moved to safe havens such as UK government bonds or gilts.
Gilt yields fall when demand for gilts increases and as prices increase it reduces the yield which means the return on those assets falls. Annuity providers use 15-year gilts to secure the income for pensioners and as a general rule a 60 basis point reduction in gilt yields will result in a 6% decrease in annuity rates, although there may be a time lag before the changes are implemented by the providers.
Quantitative Easing (QE) was introduced in March 2009 and had the effect of reducing annuity rates by 6% during that year. QE was initiated as a result of the financial crisis requiring the Bank of England to inject money directly into the economy and they are doing this now to meet the Monetary Policy Committee inflation target of 2%. The other method to achieve this target is by setting the bank Rate which is very low at 0.5% and therefore Quantitative Easing is the only way to meet the inflation target.
At the end of 2011 inflation, such as the Retail Price Index (RPI) fell from 4.8% to 4.2% and if this continues to fall at 0.6% per month it is likely to fall below the inflation target of 2%. Therefore the Bank of England is planning to inject £75 billion from February 2012 onwards and possibly up to £100 billion more during the year if required.
The Bank of England intends to use Quantitative Easing to stimulate consumer spending and company investment. By buying government bonds or gilts the overall effect is to reduce the yield so encourage investors to switch from bonds or gilts to other financial assets such as company bonds which in turn will reduce the yield on these assets. This ultimately is expected to reduce the cost of borrowing for both the consumer and business and encourage spending due to the extra money in the economy which will help to increase inflation to meet the 2% target.
Quantitative Easing also has consequences for defined benefit or final salary schemes provided by employers as gilts are used to determine the future funding provisions for these schemes. As the yields decrease a company may find the final salary scheme deficit increases and therefore the company will at some stage need provide extra funds for the pension scheme rather than using these funds for other investments such as employing new people.
The bank of England is using QE to benefit the wider economy but the side effect will be decreasing annuity rates for pensioners that are already suffering from lower incomes due to increasing inflation and QE will further reduce their buying power during their lifetime. To counter these negative factors pensioners can maximise their income if they have medical conditions which could add 20% to 60% to the annuity rate by purchasing an impaired health annuity.
Colin Thorburn is the founder of sharingpensions.co.uk and for expert information about the latest annuity rates and planning for retirement please visit http://www.sharingpensions.co.uk/annuity_rates.htm.
For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, January 3, 2012
ACA survey, Pensions gap widens in 2012
ACA survey, Pensions gap widens in 2012 ; The gulf between private and public sector pensions is set to grow this year, according to a survey from the Association of Consulting Actuaries.
The 37-page 2011 pensions trends survey found nine out of 10 private sector defined benefit schemes are now closed to new entrants and four out of 10 closed to future accrual.
It showed more than 5m public sector employees are still being offered DB pension schemes, compared to fewer than 2m private sector employees now in largely closed schemes.
Stuart Southall, chairman of ACA, said: “The government is at last waking up to the reality of how low morale is in the private sector pensions world.
“It is very difficult to see what can be done to turn the tide in the near-term given the austerity backcloth, coupled with the economic woes we are likely to face for a number of years to come.”
According to the survey, 25 per cent of private sector employers are now looking to buy-out or buy-in all their DB scheme liabilities in the next five years, rising to 40 per cent within a decade.
Only more than a quarter of employers have budgeted for the cost of workplace pension auto-enrolment which begins in stages from October 2012.
Roughly three-quarters of employers said they are likely to auto-enrol all employees into their existing workplace pension schemes.
Another 27 per cent said they are likely to review their existing pension benefits to mitigate the cost of higher scheme membership.
Mr Southall said: “Auto-enrolment, beginning later this year, should widen private sector pension coverage, particularly where no pensions are offered at present.
“But the fact the government had to delay its introduction for smaller employers, because of the deteriorating economic climate, is discouraging.”
In all three areas of investment, longevity and inflation risk, at least half of the employers said employers should share or take on a majority of these pension risks.
A fifth of employers are looking to decrease their pension spend, compared to 14 per cent aiming to increase spend.
A third of larger employers said they are looking to decrease their spend on pensions.
Mr Southall added: “Inevitably, any fresh initiative to boost pension savings will require both an easing in regulatory controls and, in all probability, new incentives to encourage employers and employees to take up the challenge and opportunities.
“The government needs to be bold in helping private sector employers so they can consider new ways to boost pension savings over the mid- to longer-term and public sector pensions are not far better.” For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
The 37-page 2011 pensions trends survey found nine out of 10 private sector defined benefit schemes are now closed to new entrants and four out of 10 closed to future accrual.
It showed more than 5m public sector employees are still being offered DB pension schemes, compared to fewer than 2m private sector employees now in largely closed schemes.
Stuart Southall, chairman of ACA, said: “The government is at last waking up to the reality of how low morale is in the private sector pensions world.
“It is very difficult to see what can be done to turn the tide in the near-term given the austerity backcloth, coupled with the economic woes we are likely to face for a number of years to come.”
According to the survey, 25 per cent of private sector employers are now looking to buy-out or buy-in all their DB scheme liabilities in the next five years, rising to 40 per cent within a decade.
Only more than a quarter of employers have budgeted for the cost of workplace pension auto-enrolment which begins in stages from October 2012.
Roughly three-quarters of employers said they are likely to auto-enrol all employees into their existing workplace pension schemes.
Another 27 per cent said they are likely to review their existing pension benefits to mitigate the cost of higher scheme membership.
Mr Southall said: “Auto-enrolment, beginning later this year, should widen private sector pension coverage, particularly where no pensions are offered at present.
“But the fact the government had to delay its introduction for smaller employers, because of the deteriorating economic climate, is discouraging.”
In all three areas of investment, longevity and inflation risk, at least half of the employers said employers should share or take on a majority of these pension risks.
A fifth of employers are looking to decrease their pension spend, compared to 14 per cent aiming to increase spend.
A third of larger employers said they are looking to decrease their spend on pensions.
Mr Southall added: “Inevitably, any fresh initiative to boost pension savings will require both an easing in regulatory controls and, in all probability, new incentives to encourage employers and employees to take up the challenge and opportunities.
“The government needs to be bold in helping private sector employers so they can consider new ways to boost pension savings over the mid- to longer-term and public sector pensions are not far better.” For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Wednesday, December 14, 2011
Canada Pension Plan (CPP) 2012
Canada Pension Plan (CPP) 2012 ;Human Resources and Skills Development Canada has announced the benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS), effective Jan. 1, 2012.
CPP benefits will increase by 2.8% for those already receiving CPP benefits. The maximum CPP retirement benefit for new recipients will increase from $960 to $986.67 per month.
The new CPP rates will be in effect until Dec. 31, 2012. The basic OAS pension, the Guaranteed Income Supplement and the Allowances will increase by 0.4%. The maximum
Major Changes Coming to the Canada Pension Plan
The Ottawa Citizen reported today that following a meeting between Jim Flaherty and provincial Finance Ministers, major changes to the Canada Pension Plan (CPP) are coming and will be phased in gradually starting in 2011. Among the changes: Read More..
Canada Pension Plan (CPP) Rules 2012
A person's CPP retirement pension is calculated as 25% of his average pensionable earnings during his contributory period. The contributory period starts when he turns 18, or 1966, whichever is later. The contributory period ends when he starts collecting the pension. This is still true after 2011, although the contributions made subsequent to starting the pension will result in the receipt of post-retirement benefits (PRB). Read More..
Canada Pension Plan and Old Age Security Benefit Rates Effective January 1, 2012
Human Resources and Skills Development Canada today announced the benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS), effective January 1, 2012.
CPP benefits will increase by 2.8 percent for those already receiving CPP benefits. CPP benefits are revised once a year, in January, based on changes over a 12-month period (November 2010 to October 2011) in the Consumer Price Index (CPI), which is the cost-of-living measure used by Statistics Canada. Read More..
Canada Pension Plan Changes for Individuals Aged 60 to 70-January 2012
Significant changes to the Canada Pension Plan (CPP) will occur in January 2012 to reflect the way Canadians are living, working, and retiring. The changes will affect both employees and self-employed workers aged 60 to 70. The changes will not affect you if you are already receiving a CPP or Quebec Pension Plan (QPP) retirement pension and you remain out of the workforce. Read More..
Canada Pension Plan 2012, cpp 2012, Canada Pension Plan Effective January 1, 2012, CPP benefits, best pension plan in canada 2012, CPP Rules 2012, new CPP rates 2012, CPP benefits, maximum CPP retirement benefit. For the latest updates PRESS CTR + D or visit Stock Market news Today
CPP benefits will increase by 2.8% for those already receiving CPP benefits. The maximum CPP retirement benefit for new recipients will increase from $960 to $986.67 per month.
The new CPP rates will be in effect until Dec. 31, 2012. The basic OAS pension, the Guaranteed Income Supplement and the Allowances will increase by 0.4%. The maximum
Major Changes Coming to the Canada Pension Plan
The Ottawa Citizen reported today that following a meeting between Jim Flaherty and provincial Finance Ministers, major changes to the Canada Pension Plan (CPP) are coming and will be phased in gradually starting in 2011. Among the changes: Read More..
Canada Pension Plan (CPP) Rules 2012
A person's CPP retirement pension is calculated as 25% of his average pensionable earnings during his contributory period. The contributory period starts when he turns 18, or 1966, whichever is later. The contributory period ends when he starts collecting the pension. This is still true after 2011, although the contributions made subsequent to starting the pension will result in the receipt of post-retirement benefits (PRB). Read More..
Canada Pension Plan and Old Age Security Benefit Rates Effective January 1, 2012
Human Resources and Skills Development Canada today announced the benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS), effective January 1, 2012.
CPP benefits will increase by 2.8 percent for those already receiving CPP benefits. CPP benefits are revised once a year, in January, based on changes over a 12-month period (November 2010 to October 2011) in the Consumer Price Index (CPI), which is the cost-of-living measure used by Statistics Canada. Read More..
Canada Pension Plan Changes for Individuals Aged 60 to 70-January 2012
Significant changes to the Canada Pension Plan (CPP) will occur in January 2012 to reflect the way Canadians are living, working, and retiring. The changes will affect both employees and self-employed workers aged 60 to 70. The changes will not affect you if you are already receiving a CPP or Quebec Pension Plan (QPP) retirement pension and you remain out of the workforce. Read More..
Canada Pension Plan 2012, cpp 2012, Canada Pension Plan Effective January 1, 2012, CPP benefits, best pension plan in canada 2012, CPP Rules 2012, new CPP rates 2012, CPP benefits, maximum CPP retirement benefit. For the latest updates PRESS CTR + D or visit Stock Market news Today
UK Pension Plan in 2012
UK Pension Plan in 2012 ; Employers have frozen pension contributions to DC schemes over the last two years due to increasing financial and regulatory pressures, according to research from consultant Mercer. Average employer contributions have remained unchanged at 7.2 per cent since 2009, while employees have reduced contributions from 4.6 per cent to 4.2 per cent.
The UK’s largest employers are due to start automatically enrolling staff into a pension scheme from October 2012. However, the timetable for firms with fewer than 3,000 employees has been delayed following pressure from small business lobby groups.
EU's potential pension plan worries UK businesses
British firms are fearful of proposed European Union pension reforms, a survey showed today. The reforms may require firms to put billions of pounds into defined benefit pension plans, potentially spurring a trend to end such schemes. Read More..
MSPs to call for end to UK Government pension plan
Ahead of today’s public sector strikes the SNP said its MSPs would raise concerns over the UK Government’s cash grab on public sector pensions in Parliament and send a clear message to the UK Government that Scotland does not back this tax on public sector workers. Read More..
UK union warns BMW over pension-plan effort
Unite, the British union, Thursday warned car maker BMW that it could face industrial action in the new year unless it reverses plans to close its pension scheme to new starters and use legal loop-holes to deny agency staff equal pay. Read More..
Aviva to offload its UK pension assets
Aviva is considering selling a chunk of the billions of pounds worth of UK pension assets it owns as it looks to boost the amount of capital it holds on its balance sheet. The FTSE 100 insurance group is exploring whether to raise funds by offloading some of its so-called back book of annuities – policies that provide retirement incomes to pensioners. Read More..
best pension plan in UK 2012, UK Pension Plan in 2012, UK pension assets 2012, will uk pension plan 2012, uk pension funds 2012, European Union pension reforms 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
The UK’s largest employers are due to start automatically enrolling staff into a pension scheme from October 2012. However, the timetable for firms with fewer than 3,000 employees has been delayed following pressure from small business lobby groups.
EU's potential pension plan worries UK businesses
British firms are fearful of proposed European Union pension reforms, a survey showed today. The reforms may require firms to put billions of pounds into defined benefit pension plans, potentially spurring a trend to end such schemes. Read More..
MSPs to call for end to UK Government pension plan
Ahead of today’s public sector strikes the SNP said its MSPs would raise concerns over the UK Government’s cash grab on public sector pensions in Parliament and send a clear message to the UK Government that Scotland does not back this tax on public sector workers. Read More..
UK union warns BMW over pension-plan effort
Unite, the British union, Thursday warned car maker BMW that it could face industrial action in the new year unless it reverses plans to close its pension scheme to new starters and use legal loop-holes to deny agency staff equal pay. Read More..
Aviva to offload its UK pension assets
Aviva is considering selling a chunk of the billions of pounds worth of UK pension assets it owns as it looks to boost the amount of capital it holds on its balance sheet. The FTSE 100 insurance group is exploring whether to raise funds by offloading some of its so-called back book of annuities – policies that provide retirement incomes to pensioners. Read More..
best pension plan in UK 2012, UK Pension Plan in 2012, UK pension assets 2012, will uk pension plan 2012, uk pension funds 2012, European Union pension reforms 2012 For the latest updates PRESS CTR + D or visit Stock Market news Today
Thursday, August 25, 2011
Best pension plans tips 2011- 2012
Best pension plans tips 2011-2012 : Suffice to say, then, if you plan to enjoy retirement, there's work to be done; a long and fulfilling life awaits many of us, but we're going to need to plan properly if we're to pay for it, pension tips to help you get – and stay – on the right track.
1. Seriously review; carefully re-plan
Retirement might seem aeons away, but that's no excuse to turn a blind eye and lapse into spendthrift ways.
If you don't know how much you've saved (via pensions, Isas, stock market investments, property etc.) then run a comprehensive review. Done on a regular basis – perhaps once or twice a year - this will help keep you on straight and narrow.
There are three essential boxes to tick before pension tinkering can begin, says Nick Lincoln, an independent financial adviser at Values to Vision Financial Planning.
First, work out when you want to retire and the income you'll need to live the retirement life you want. Calculate all your potential income streams in retirement (state pension, rental incomes, Isa investments, final salary benefits, employer pensions). Compare the two numbers. The shortfall figure should guide your action plan.
If you're not meeting your target, you'll have four main options: retiring later, saving more now, accepting less retirement income, or taking more risk to improve returns.
Steve Laird, an independent financial adviser at Carrington Wealth Management, has these top tips: 'If you have one or more existing pension plans, get a projection of what the benefits are likely to be at your chosen retirement age. If you have a company pension scheme you should be able to get this information from the scheme trustees.
'If it's a personal pension plan then write to the plan provider. Ask for a projection 'in today's money' – this will give you a much better idea of what you'll be able to buy with your pension fund.
'If there's a big shortfall between what you'll get and what you'll need then the time to take action is now – the longer that you leave it, the more it will cost you to make up the difference.
As a guide for how much to save, Alan Maxwell, a chartered financial planner at Corporate Benefits, says around 10% to 15% of your salary should be dedicated towards long-term planning - at all times.
2. Take advantage of Isas
Each year you can save up to £10,200 into an Isa (£5,100 in cash). Each year the allowance rises slightly (it's linked to inflation).Isas are simply investment 'wrappers' that shelter your cash from the long arm of the taxman. For basic rate taxpayers, this is a better saving solution than a pension (see below). The key difference with Isas is that you have access to your cash before age 55. If you're unsure which is right for you, check our Isa vs. Pension pros and cons round up.
Danny Cox, an adviser at Hargreaves Lansdown, says: 'Make full use of your Isa allowance. Less tax means the potential for much better returns from your savings and investments.'
Ian Lowes, of Lowes Financial Management, says: 'Despite the fact that Isas have been around for more than a decade, there is still a lot of misunderstanding surrounding them.
'An Isa is simply an annual allowance that everyone over 18 has to shelter some of their investments or savings from income tax and/or capital gains tax. They should be used by most investors each year in one form or another.
3. Use a pension to claw back tax
Pensions are the archetypal retirement savings product. It is more than possible to get all the way to retirement without them. But higher rate taxpayers should take note: a pension can help claw back some of the 40% or 50% tax you cough up each year.
Quite simply, the Government refunds your income tax when you store money in a pension. This is reward for being unable to use it until you're 55. Income tax is paid on the way out of the pension in retirement. But, the benefit is that you'll probably qualify within a lower income threshold – usually as a basic rate taxpayer – and so reduce your percentage liability from 40% or 50% to 20%. Additionally, you can claim a quarter of the pension pot direct as a tax-free lump sum – you'll never, ever have paid tax on this cash.
Ian Lowes says: 'Tax relief means a £1,000 contribution will cost a higher rate taxpayer just £600. The downside is that you can only have 25% of the fund back - and only once you're at least 55. The rest of the fund has to provide a taxable income (via an annuity or drawdown policy – see below).
4. Check how your pension is invested
This is one of the serious areas of concern for those already with a pension. Poor performance can leave you seriously under-funded in retirement. In particular, watch out for so-called 'zombie funds'. We warn about these at This is Money.
An estimated 11 million savers are trapped in failing pension funds that deny them thousands of pounds of yearly income in retirement.
Peter McGahan, an independent financial adviser at Worldwide Financial Planning, says: 'Make sure your money is being invested by the best fund managers. A decent investment-based IFA will know how to pick these.'
Alan Maxwell, a chartered financial planner at Corporate Benefits, says many people - particularly those with funds in very old pensions - never bother to check how their money is managed. They just presume solid returns are a given. They're not. With fund managers changing regularly and performance varying, it's a serious concern.
Nick Lincoln, independent financial adviser at Values to Vision Financial Planning recommends that younger investors with more than ten years to retirement make sure they're reaping the rewards of the stock markets.
'It's too risky to invest in anything else (risk defined here as the likelihood of your fund not growing fast enough, which is the biggest risk of all),' he says. 'Divest back out of equities as you approach retirement.'
In your 50s, you must reconsider your 'risk profile'. This means opting out of riskier investments – shares – to lock in your gains. Instead, cash and bonds will provide a more consistent return.
Chris Wicks, a chartered financial planner at Bridgewater, explains: 'If you are retiring in the next couple of years you need to start to reduce the risk of your pension fund by moving to fixed interest and cash funds to avoid the impact of a last minute stock market drop on your retirement income.
5. Cut costs with a fund supermarket
To optimise your investments to the full, steer clear of dinosaur personal pension plans altogether. Instead, try a Self-Invested Personal Pensions (Sipp). These allow you to choose exactly how your cash is invested, whether in shares, funds, commercial property or something else. Created 21 years ago for high net wealth savers, they have become far more accessible in the 21st Century.
For the majority of mid-wealth investors, a fund supermarket-style Sipp – which is simply a low-cost platform for investing in different funds – could work perfectly.
Danny Cox says: 'Use a fund supermarket to reduce costs and simplify your investments. As the name suggests a fund supermarket is a one stop shop for Isas, Sipps, funds, shares, ETFs and investment trusts.
'They buy in bulk and pass those savings onto the investor, meaning you can invest in a unit trust saving as much as 5.5% on the cost when buying direct. Fund supermarkets enable you to consolidate your investments and pensions into one simple statement, view the value at anytime on line and deal on-line from the comfort of your own home.'
Some of the cheapest fund low-cost Sipps are run by Hargreaves Lansdown, James Hay, AJ Bell's Sippdeal, and Alliance Trust. Help on finding the cheapest low cost Sipp.
6. Get the right annuity
From April, some retirees will no longer need to purchase an annuity to convert their pots into an income. It will be possible, instead, to stay invested in the stock market and draw money slowly from your pot.
But the operative word here is 'some' people. Most will still find that the secure income stream from an annuity is necessary for a hassle-free old age. Others simply won't be allowed to opt out of annuity purchases because their funds won't be large enough. More on the new rules here.
When you hit retirement, it's absolutely essential to shop around for the best annuity rate. At the beginning of 2011, a £100,000 pot typically buys a pension of just £5,500 a year for a couple. But different insurance companies vary wildly - by as much as 20% - in the sort of income they'll pay in exchange for your pension pot.
This is particularly important if your health is poor as you may qualify for an enhanced rate - sometimes a huge 30% - 40% more. This applies to smokers, too, as their life expectancy is shorter.
Peter McGahan points out that some pension plans provide 'guaranteed' annuity rates that comprehensively beat the open market options. But he warns that even then, these they aren't always the best option.
He says: 'Check whether your pension offers a guaranteed annuity. As you retire you might see this is around 8% or 9% and that looks very attractive. But when you dig deeper, you'll find that these often have serious downsides. Firstly, most don't include spouses in the terms. That means that if you die, your partner won't benefit – the payments will stop. (source www.thisismoney.co.u )
Best pension plans tips 2011, best pension plans tips 2012, best pension plans help 2011, free pension plans tips 2011, best pension plans walkthrough 2011, best pension plans techniques 2011, How to sort out your pension in 2011, pension, pension plan, pension protection act, nj pension, pensions and investments, pension accounting, pension plan accounting, ifrs pension accounting, pension accounting basics, pension accounting 101, pension vs 401k, pension plan vs 401 k, pension plans vs 401k. For the latest updates PRESS CTR + D or visit Stock Market news Today
1. Seriously review; carefully re-plan
Retirement might seem aeons away, but that's no excuse to turn a blind eye and lapse into spendthrift ways.
If you don't know how much you've saved (via pensions, Isas, stock market investments, property etc.) then run a comprehensive review. Done on a regular basis – perhaps once or twice a year - this will help keep you on straight and narrow.
There are three essential boxes to tick before pension tinkering can begin, says Nick Lincoln, an independent financial adviser at Values to Vision Financial Planning.
First, work out when you want to retire and the income you'll need to live the retirement life you want. Calculate all your potential income streams in retirement (state pension, rental incomes, Isa investments, final salary benefits, employer pensions). Compare the two numbers. The shortfall figure should guide your action plan.
If you're not meeting your target, you'll have four main options: retiring later, saving more now, accepting less retirement income, or taking more risk to improve returns.
Steve Laird, an independent financial adviser at Carrington Wealth Management, has these top tips: 'If you have one or more existing pension plans, get a projection of what the benefits are likely to be at your chosen retirement age. If you have a company pension scheme you should be able to get this information from the scheme trustees.
'If it's a personal pension plan then write to the plan provider. Ask for a projection 'in today's money' – this will give you a much better idea of what you'll be able to buy with your pension fund.
'If there's a big shortfall between what you'll get and what you'll need then the time to take action is now – the longer that you leave it, the more it will cost you to make up the difference.
As a guide for how much to save, Alan Maxwell, a chartered financial planner at Corporate Benefits, says around 10% to 15% of your salary should be dedicated towards long-term planning - at all times.
2. Take advantage of Isas
Each year you can save up to £10,200 into an Isa (£5,100 in cash). Each year the allowance rises slightly (it's linked to inflation).Isas are simply investment 'wrappers' that shelter your cash from the long arm of the taxman. For basic rate taxpayers, this is a better saving solution than a pension (see below). The key difference with Isas is that you have access to your cash before age 55. If you're unsure which is right for you, check our Isa vs. Pension pros and cons round up.
Danny Cox, an adviser at Hargreaves Lansdown, says: 'Make full use of your Isa allowance. Less tax means the potential for much better returns from your savings and investments.'
Ian Lowes, of Lowes Financial Management, says: 'Despite the fact that Isas have been around for more than a decade, there is still a lot of misunderstanding surrounding them.
'An Isa is simply an annual allowance that everyone over 18 has to shelter some of their investments or savings from income tax and/or capital gains tax. They should be used by most investors each year in one form or another.
3. Use a pension to claw back tax
Pensions are the archetypal retirement savings product. It is more than possible to get all the way to retirement without them. But higher rate taxpayers should take note: a pension can help claw back some of the 40% or 50% tax you cough up each year.
Quite simply, the Government refunds your income tax when you store money in a pension. This is reward for being unable to use it until you're 55. Income tax is paid on the way out of the pension in retirement. But, the benefit is that you'll probably qualify within a lower income threshold – usually as a basic rate taxpayer – and so reduce your percentage liability from 40% or 50% to 20%. Additionally, you can claim a quarter of the pension pot direct as a tax-free lump sum – you'll never, ever have paid tax on this cash.
Ian Lowes says: 'Tax relief means a £1,000 contribution will cost a higher rate taxpayer just £600. The downside is that you can only have 25% of the fund back - and only once you're at least 55. The rest of the fund has to provide a taxable income (via an annuity or drawdown policy – see below).
4. Check how your pension is invested
This is one of the serious areas of concern for those already with a pension. Poor performance can leave you seriously under-funded in retirement. In particular, watch out for so-called 'zombie funds'. We warn about these at This is Money.
An estimated 11 million savers are trapped in failing pension funds that deny them thousands of pounds of yearly income in retirement.
Peter McGahan, an independent financial adviser at Worldwide Financial Planning, says: 'Make sure your money is being invested by the best fund managers. A decent investment-based IFA will know how to pick these.'
Alan Maxwell, a chartered financial planner at Corporate Benefits, says many people - particularly those with funds in very old pensions - never bother to check how their money is managed. They just presume solid returns are a given. They're not. With fund managers changing regularly and performance varying, it's a serious concern.
Nick Lincoln, independent financial adviser at Values to Vision Financial Planning recommends that younger investors with more than ten years to retirement make sure they're reaping the rewards of the stock markets.
'It's too risky to invest in anything else (risk defined here as the likelihood of your fund not growing fast enough, which is the biggest risk of all),' he says. 'Divest back out of equities as you approach retirement.'
In your 50s, you must reconsider your 'risk profile'. This means opting out of riskier investments – shares – to lock in your gains. Instead, cash and bonds will provide a more consistent return.
Chris Wicks, a chartered financial planner at Bridgewater, explains: 'If you are retiring in the next couple of years you need to start to reduce the risk of your pension fund by moving to fixed interest and cash funds to avoid the impact of a last minute stock market drop on your retirement income.
5. Cut costs with a fund supermarket
To optimise your investments to the full, steer clear of dinosaur personal pension plans altogether. Instead, try a Self-Invested Personal Pensions (Sipp). These allow you to choose exactly how your cash is invested, whether in shares, funds, commercial property or something else. Created 21 years ago for high net wealth savers, they have become far more accessible in the 21st Century.
For the majority of mid-wealth investors, a fund supermarket-style Sipp – which is simply a low-cost platform for investing in different funds – could work perfectly.
Danny Cox says: 'Use a fund supermarket to reduce costs and simplify your investments. As the name suggests a fund supermarket is a one stop shop for Isas, Sipps, funds, shares, ETFs and investment trusts.
'They buy in bulk and pass those savings onto the investor, meaning you can invest in a unit trust saving as much as 5.5% on the cost when buying direct. Fund supermarkets enable you to consolidate your investments and pensions into one simple statement, view the value at anytime on line and deal on-line from the comfort of your own home.'
Some of the cheapest fund low-cost Sipps are run by Hargreaves Lansdown, James Hay, AJ Bell's Sippdeal, and Alliance Trust. Help on finding the cheapest low cost Sipp.
6. Get the right annuity
From April, some retirees will no longer need to purchase an annuity to convert their pots into an income. It will be possible, instead, to stay invested in the stock market and draw money slowly from your pot.
But the operative word here is 'some' people. Most will still find that the secure income stream from an annuity is necessary for a hassle-free old age. Others simply won't be allowed to opt out of annuity purchases because their funds won't be large enough. More on the new rules here.
When you hit retirement, it's absolutely essential to shop around for the best annuity rate. At the beginning of 2011, a £100,000 pot typically buys a pension of just £5,500 a year for a couple. But different insurance companies vary wildly - by as much as 20% - in the sort of income they'll pay in exchange for your pension pot.
This is particularly important if your health is poor as you may qualify for an enhanced rate - sometimes a huge 30% - 40% more. This applies to smokers, too, as their life expectancy is shorter.
Peter McGahan points out that some pension plans provide 'guaranteed' annuity rates that comprehensively beat the open market options. But he warns that even then, these they aren't always the best option.
He says: 'Check whether your pension offers a guaranteed annuity. As you retire you might see this is around 8% or 9% and that looks very attractive. But when you dig deeper, you'll find that these often have serious downsides. Firstly, most don't include spouses in the terms. That means that if you die, your partner won't benefit – the payments will stop. (source www.thisismoney.co.u )
Best pension plans tips 2011, best pension plans tips 2012, best pension plans help 2011, free pension plans tips 2011, best pension plans walkthrough 2011, best pension plans techniques 2011, How to sort out your pension in 2011, pension, pension plan, pension protection act, nj pension, pensions and investments, pension accounting, pension plan accounting, ifrs pension accounting, pension accounting basics, pension accounting 101, pension vs 401k, pension plan vs 401 k, pension plans vs 401k. For the latest updates PRESS CTR + D or visit Stock Market news Today
Subscribe to:
Posts (Atom)