Almost half of all final salary pension schemes will close within five years, according to research by Alexander Forbes Financial Services, reports the Guardian .
The research says the cost of running "generous" defined benefit pensions will lead to 46% of schemes shutting their doors to members by 2011.
Six out of 10 schemes have witnessed a rise in the expense of maintaining final salary schemes since the Pensions Act 2004.
The act set up the Pensions Protection Fund (PPF) under which employers with final salary schemes are obliged to contribute a levy to help compensate those who have lost some or all of their pension as a result of company wind-ups, says the paper.
SIR ANDREW Large attacked London’s ban on listed hedge funds as “anachronistic” yesterday as he was named chairman of a record-breaking new €1bn (£675m) hedge fund floating in Amsterdam, reports the Times.
The former Bank of England deputy governor and chairman of the Securities and Investments Board, forerunner to the Financial Services Authority, is to chair the new investment vehicle operated by the London hedge fund manager Marshall Wace.
Sir Andrew said London’s restrictions on the listing of single-strategy hedge funds was one reason for the choice of Amsterdam. Single-strategy hedge funds are usually banned from full listings in London because they are not sufficiently diversified and because of restrictions on short-selling.
BANKS AND building societies are cashing in on the "point nine nine syndrome" by taking advantage of some customers' limited ability to process numbers, Moneyfacts.co.uk has warned, says the Scotsman.
The independent financial information provider carried out research with the Universities of East Anglia and Leeds, which reveals the interest rates for a disproportionate number of mortgages end in .99, rather than a whole figure.
It is the same practice supermarkets apply when they offer a product at £1.99 instead of £2, as people are inclined to think they are getting something cheaper.
The study found this approach was widespread among lenders and Moneyfacts said it was consistent with banks attempting to gain the greatest profits from customers with limited ability to process number information.
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£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards