News That Matters

Tag: pension

How to build your own pension with annuities

How to build your own pension with annuities

Finance
In the past, workers often could rely on having two sources of retirement income: Social Security and the pension their employer paid them. Having two reliable monthly checks coming in made it possible to have a financially secure retirement without necessarily having a lot of outside savings. Now, though, most companies don't offer pensions, and it's critical to save money for retirement in order to supplement Social Security payments that, in nearly all cases, are inadequate to cover your living expenses. If you have a retirement nest egg, one thing you can do with a portion of your savings is purchase what's known as an immediate annuity. By doing so, you can essentially build your own pension and get a guaranteed income to supplement Social Security for the rest of your life. Wha...
Carillion tried to 'wriggle out' of pension contributions

Carillion tried to 'wriggle out' of pension contributions

Business
Carillion "wriggled out" of payments into its company pension schemes as its troubles grew, while it carried on paying shareholder dividends and bosses' bonuses, say MPs.The Work and Pensions Committee is questioning the way pension investments were managed at the collapsed outsourcing giant.The schemes overall are in deficit.But last year contributions to the pension funds were deferred until 2019, to help shore up the firm's finances. The committee has published a letter from Robin Ellison, chairman of trustees of Carillion's pension scheme, giving an account of the last few years and suggesting they have been left with a funding shortfall of around £990m.The letter shows that pension trustees were "kept in the dark" about the state of Carillion's finances until late last year, the commi
UK railway pension fund investing millions in music

UK railway pension fund investing millions in music

Finance
Of the many alternative investments outside stocks and bonds that pension funds can buy, a few are putting retirement money into music copyrights.RPMI Railpen, the manager of one of the largest and oldest UK pension funds, is leading a $ 345 million investment in a fund rolled out Monday by Kobalt Capital, the subsidiary of music royalties collection and technology company Kobalt."With low expected returns from many traditional asset classes, we are prepared to allocate in alternative investments that can help us to pay members' pensions well into the future," Craig Heron, deputy investment director, RPMI Railpen, told CNBC this week in an email. Through the fund, Railpen buys music copyrights and receives royalties collected by Kobalt."This is an innovative investment opportunity that off...
Taskforce: £1.5trn pension superfund needed

Taskforce: £1.5trn pension superfund needed

Business
A cluster of 'superfunds' created by pooling £1.5trn of assets in existing retirement schemes offers the best route to mitigate Britain's growing pensions crisis, a City taskforce will say this week.Sky News has learnt that a committee established by the Pensions and Lifetime Savings Association (PLSA) will follow up an earlier report by warning that the current system with thousands of smaller defined benefit (DB) schemes operating independently is "placing the retirement savings of millions...at risk".The taskforce's final report will paint a stark picture of the challenges facing businesses as they attempt to close their yawning pension deficits, citing the crises at companies such as BHS, Woolworths and Tata Steel."Many existing DB schemes were established in 'old world' industries lik
Canada Pension Funds may drive in Rs 4000 crore to India

Canada Pension Funds may drive in Rs 4000 crore to India

Finance
Canada-based pension funds PSP Investments and Ontario Teachers’ Pension Plan (OTPP) are in talks to invest Rs 4,000 crore in an investment platform co-promoted by the government of India-sponsored National Investment and Infrastructure Fund (NIIF), persons directly familiar with the matter said. The funds could invest in a special purpose vehicle (SPV) floated by NIIF to fund toll and annuitybased road projects, they said. The three parties are currently negotiating the structure of the partnership, which could entail the creation of a supervisory board in which the funds will have representation. The board will monitor investments made by the SPV. NIIF may invest a similar amount of money in the SPV to acquire a proportionate equity holding in the investment platform or may rope in ot