PIA acts to lower rate projections
Article Abstract:
Concerns about falling investment returns have prompted the Personal Investment Authority (PIA) to propose that the expected rates of return should fall by up to 2%. Under current regulations, financial advisers use returns of 6% or 12% when selling policies, in order to illustrate how much investors will get when the pension or endowment policy matures. The projections then influence how much investors will pay to achieve the pay out. Analysts have become increasingly concerned that policyholders are paying unrealistically low premiums due to over optimistic assumptions about returns. Many customers, who bought policies in the 1980s when projected rates of return were high, face the problem of not being able to cover the cost of their mortgage when their policy matures.
Comment:
UK: Concerns about falling investment returns have prompted PIA to propose that expected rates of return should fall by up to 2%
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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UK: RISE IN PENSION CONTRIBUTIONS BY EMPLOYERS
Article Abstract:
Figures from Income Data Services indicate that UK employers' pension contributions have risen by almost 5% in the last full financial year, the first increase in four years. They had previously declined by as much as 7%. The change is thought to be the result of the increase in members of pensionable age, new minimum finding requirements, and the abolition of pension funds' tax credit on dividends.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: HIGHER COST OF PENSIONS FOR DIRECTORS
Article Abstract:
Lane, Clark & Peacock, the consulting actuaries, have found that the cost of offering pensions for company directors is increasing due to poorer investment returns. According to the actuaries the cost of directors' pensions is now an average 42% of pay but stood at 35% in 1998.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
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