Abstracts » Business

That other pension problem

Article Abstract:

Pension savings could be too high for some British workers, and pension wealth is greater than housing wealth, while stock prices have risen by more than house prices. Some people have no pension savings, and the population is ageing, so has to save more for pensions. Some investors will have more saved for a pension than anticipated due to higher stock prices than forecast. A rise in stock prices could lead to higher spending levels as investors reduce the excess amount saved. Early retirement could also become more common as a result of higher pension savings.

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Pension perils

Article Abstract:

It is important for young people to save for a pension, especially due to the effect of compound interest, which means that the initial effort is well rewarded.

Personal Financial Mgmt, Management, Personal finance

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Still on hols

Article Abstract:

Corporate contributions into UK pensions schemes are at low levels but this could change. Pension schemes have benefited from good returns from investments in the 15 years to 1997. Poorer returns would mean that employers would have to increase their contributions. Lower contribution levels produced a saving to companies of from 1.5 billion pounds sterling and 3.5 billion pounds in 1996. An increase in contributions to long-term average levels could represent some 2.5% of net profit for 1996.

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