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The provision of pensions
is not only a major concern for companies but also for individuals who wish
to protect their income in retirement. Often the assets held in a pension
scheme are larger than the stock market value of the company and funding the
pension obligations can be a very onerous liability.
Due to recent stock
market volatility and a realisation that there was a historic over emphasis
on stock market investment as opposed to more secure gilt or bond
investments, many companies have reviewed their pension schemes. This has
included cut backs on their pension scheme contributions, or a change to a
defined contribution scheme from a defined benefit scheme.
With reduced
contributions and poorer investment returns many people have found that
their happy retirement is in jeopardy. At the same time, with low interest
rates and increasing longevity, annuity rates have been reduced, thus
leading to a perceived crisis in the pension industry.
For UKSA contributions
to government policies on pensions, refer to the following documents:
Pension_Annuities_2002
Pensions_A_Secure_Future_2001
Pensions_DSS_1999
Pensions_Treasurey_1999
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