Annuity Base

Open Market Option Comparisons for Pension Income

annuities
Share |

The Difference Between The Best And Worst Pension Incomes Can Be Very Surprising

Aegon Annuities Aviva Annuities Axa Annuities Canada Life Annuities Friends Life Annuities Hodge Annuities Just Retirement Annuities Legal and General Annuities LV Annuities
MGM Annuities Novia Annuities Old Mutual Annuities Partnership Annuities Phoenix Annuities Pru Annuities Royal London Annuities Scottish Widows Annuities Zurich Annuities annuities

We value your privacy: The same as almost all sites, we use computer files called cookies that measure how many people use the site. They can't be used to identify you personally. If you continue without changing your settings, we'll assume that you are happy to receive cookies. We don't share your information with 3rd parties.

Looking for an alternative to an annuity? Visit Annuity Answers.

Archived Annuities News / Income Drawdown News

What's happening in the world of pensions

News and articles about annuities, pensions and income drawdown

PLEASE BOOKMARK NOW

By following any news links you will be leaving the Annuity Base site and we are not responsible for the accuracy of the information contained in any other site or the regulatory status of any other firm within the linked sites accessible from this site.

Please visit our main annuities news page for more news.

Deficits of defined pension schemes fall, while funds rise

Defined benefit pension schemes “appear to be in better health compared to 10 years ago”, with a drop in deficits and an increase in funds, according to figures from consultancy firm Mercer.

Mercer's Pensions Risk Survey consultancy report revealed a downward trend in the deficit figure for defined benefit (DB) pension schemes of FTSE350 companies.

At the end of September DB scheme deficits made a significant drop to £42 billion, from a figure of £63 billion at the end of August. As well as a month on month drop, this figure was lower than the £61 billion recorded at the end of December 2011.

Average scheme funding levels have also inched up over the last decade, rising from 79% in 2002 to 89% in 2012.

Despite these positive figures, liabilities continue to outweigh the value of assets, demonstrating the volatile nature of the market. In 2002, the value of liabilities in the FTSE350 stood at £357 billion while assets stood at £282 billion. By 2012, these figures were £574 billion and £501 billion respectively.

Commenting on some of the reasons behind the continued gulf between assets and liabilities Adrian Hartshorn, a partner in Mercer’s Financial Strategy Group, said:

“The analysis illustrates the impact of the sustained fall in bond yields, equity underperformance and improving longevity over the last 10 years. Even removing the impact of price inflation, 2012 liability values are much higher than they were in 2002, which can be accounted for by the falling bond yields and improving longevity.

“Whilst defined benefit schemes appear to be in better health compared to 10 years ago because the funding level is higher, big deficits remain despite very large company contributions over the period.”

 Hartshorn went on to say that DB schemes need to do more to create de-risking strategies to ensure a better outcome over the next decade.

Please visit our main annuities news page for more news.

Make Contact Now

Take action now and uncover the differences

Receive a FREE Pension Annuities Comparison Quote

Please complete the free no-obligation enquiry form and see the surprising differences between one annuity and another. Remember your enquiry is free.

There is no charge for us investigating your policy and you are under no obligation to follow any recommendations that are made.

Your annuity specialist is registered with the Financial Conduct Authority (FCA).

We will:
1. Search the whole of the market for you so you are more able to make a decision
2. Check if you are eligible for an enhanced annuity that could increase your income
3. Give you access to more flexible options including fixed term annuities and income drawdown, should you wish

FULLY CONFIDENTIAL ANNUITY COMPARISON QUOTES WITH NO OBLIGATION

Your Age (You must be aged 55 or over)
Do you already have an annuity? (If so, sorry, we cannot help. Annuities cannot be cashed in at this time.)
Name
Preferred contact phone number
2nd number just in case (optional)
Email address (optional)
Annuities PRIVACY PROMISE: We will never share your data or spam you. Data Protection No. Z1760988
annuities