CDC Pensions - a complex solution that delivers simplicity for employees

February 15, 2019 Tom Murray

defined contribution NEST state pension CDC schemes defined benefit

CDC Pensions - a complex solution that delivers simplicity for employees   complexity is the bugbear of getting people to save for their retirement.  The need to save is easily explained, but the simplistic solutions of the past, at least to the retiree, of defined benefit pensions and state pensions are either no longer viable (DB schemes) or are under huge pressure from changing demographics (state pensions).   The new approaches being undertaken to resolve the level of under saving in the retirement market are a lot more demanding of financial expertise.
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Downward spiral continues for pensions

September 05, 2016 Tom Murray

Pensions defined contribution UK pensions DB defined benefit

Downward spiral continues for pensions This week’s news that Carclo, a major technical plastics manufacturer in Yorkshire, has warned that its final dividend to shareholders will be reduced or eliminated in order to shore up the company’s defined-benefit pension fund, starts to bring the reality of the crisis in pensions home to a wider audience.  The significant decrease in bond-values, the primary investment component of most defined benefit pension funds, since the EU referendum result means that the liabilities have grown significantly, and therefore the shareholders share of the profit must be sacrificed to plug the gap.
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Defined Benefits Pensions - Death by 1000 cuts

May 31, 2016 Tom Murray

RPI defined benefit plans defined benefit CPI

DB Pensions – death by 1000 cuts   The raucous noise you keep hearing in the background is the wailing of many in the pension world as they decry the attempt by the Treasury to remove the DB (Defined Benefit) albatross around the Tata Steel’s neck by restricting the pension’s annual increase to the CPI (Consumer Price Index) rather than the higher RPI (Retail Price Index) measure currently used. 
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Is this really pension freedom?

June 03, 2015 Tom Murray

Financial Adviser Pensions UK Pensions freedom pension provider

“Freedom is not worth having if it does not include the freedom to make mistakes.” ― Mahatma Gandhi
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Benefits Canada: Compulsion is the best solution for pension provision

July 30, 2013 Tom Murray

feasible longevity Pensions International Monetary Fund Canada

By Tom Murray, Head of Product Strategy, Exaxe.
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Give PRPPs a chance

June 13, 2013 Tom Murray

employer responsibility Pensions Canada voluntary Life and Pensions

Canada’s great leap forward in terms of pension provision is taking shape. Pooled Registered Pension Plans (PRPPs) have now been adopted in a large number of Provinces and the rest are likely to follow quickly. However, the effectiveness of this innovation in saving is undermined by the purely support role that PRPPs are being allotted in the overall pension production, at least in the eyes of the majority of pension commentators.
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Good start, Ed, but what about Public Sector pensions?

June 11, 2013 Tom Murray

welfare simon cowell Pensions UK cap

It is one of the joys of being on the opposition that you can actually speak some of the hard truths that one is prevented from mentioning if you actually have power. This freedom is what Shadow Chancellor Ed Balls indulged in when he announced that he would include pension spending in the overall welfare benefits cap on the basis that it constituted 66% of the entire spending on benefits. An eminently sensible idea but he forgot about the power of the grey vote.
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Canada kicks public sector pension reform down the road

March 22, 2013 Tom Murray

Minister Flaherty Pensions defined contribution private sectory Canada

The 2013 budget of Minister Flaherty has flunked the issue of public sector pensions. He makes a clear commitment to making the system affordable in the future but then kicks the can down the road by announcing vague consultations that will take place at some unspecified time in ‘the coming months’.
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Is the Chancellor brave enough to tackle Public Sector pensions?

March 19, 2013 Tom Murray

ageing public sector pension Pensions UK defined contribution

[dropcap letter="T"]here can be little doubt that last year’s big announcement of the flat rate state pension was a major transforming moment for UK pensions. This is only the start of the changes that need to happen to truly bring the UK pensions system into a sustainable position, changes which I’ve touched on in previous blogs.
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Reducing longevity risks in defined benefit pensions

June 09, 2010 Tom Murray

Pensions UK Life and Pensions HMRC tax free lump sum

Defined benefit schemes are beneficial to society, giving members, lucky enough to be in one, stability for the future. But many schemes are in severe danger of collapse, under pressure from increasing longevity within the population. This pressure from payments carrying on far beyond what was originally envisioned will break many schemes, forcing people into money-purchase schemes, which have no guaranteed results and therefore risk leaving more people dependent upon the state. Given the enormous cost this would impose on society, and therefore on business just as much as individuals, we all need to start thinking of more radical solutions for stabilising those defined benefit schemes currently in existence.
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