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giesahoose

Ftse 100 Companies Pension Collapse

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Falling bond yields cause problems for pension funds, because they reduce the amount of income available from investments.

It's a surprise though that the assets they invest in don't rise in value to mitigate the fall in interest rates/income. They seem to most everywhere else - including house prices. The current system and circumstances continually demonstrate failure of one kind or another but provided the VIs are able to continue troughing then nothing seems to be done about it. For sure wages of pension fund executives are unlikely to be down.

Of course much of this sort of problem will now be due to the delays in leaving the eu.

Edited by billybong

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Companies are paying out more in dividends than they are paying into their pension scheme

"If they can pay afford to pay out in a single year, dividends that are 25% more than the deficit, then they can manage their pension funding over the period," he said.

"I think there is going to be some attention focused on the level of dividends for companies that have large pension deficits."

Not rocket science that dividends could therefore fall.

For more cautious savers who might invest in companies for dividends as their cash interest rates fall, it seems another investment opportunity is likely to be problematic for them going forwards.

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That's a hell of a jump !!

That's the cost of pensions.

You have a house buying fund of £100k, looking to buy a £150k house in a year when your fund is projected to be £125k. You have a deficit of £25k.

Your fund rises by £50k, but the cost of the house rises to £200k. Your fund has performed better than you projected, but your deficit is now £50k.

That's what just happened to pension funds.

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Lets face it...the government want nothing else other than people investing in their housing bubble.

Without it, the banks will collapse....or at least their business model will.

They will now stop at nothing to support the housing bubble over anything else.

Edited by TheCountOfNowhere

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Companies are paying out more in dividends than they are paying into their pension scheme

Not rocket science that dividends could therefore fall.

For more cautious savers who might invest in companies for dividends as their cash interest rates fall, it seems another investment opportunity is likely to be problematic for them going forwards.

Yep.

But you can't solve a pension deficit just by diverting dividends. 'Cos if you slash a dividend, that has repercussions in the market, as investors mark you down. Your cost of finance will rise, and you will struggle to raise finance for investment. The zombification problem. Better to tread a tightrope like Japan or Italy than to go like Greece.

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Yep.

But you can't solve a pension deficit just by diverting dividends. 'Cos if you slash a dividend, that has repercussions in the market, as investors mark you down. Your cost of finance will rise, and you will struggle to raise finance for investment. The zombification problem. Better to tread a tightrope like Japan or Italy than to go like Greece.

Someone has driven us between a rock and a hard place

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What comes first in order of importance?.....Staff, Customers or Investors?.......what is of more importance, short-term instant gratification hits or long-term future stability and planning? ;)

I suppose more people today think that if you don't grab it whilst you can get it tomorrow it will be gone.....still for far too many they will never get any anyway, often the ones that work the hardest that create the profits......still customers are very discerning, they will shop around if it is made possible to shop around.

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Underneath, it's just silver thousands of poor people living in poverty just so the elite can show how great their country is.

Edited by TheCountOfNowhere

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For goodness sake, cheer up you lot. We've just won another gold in the synchronous pommelhorse. What more do you want?

LOL - well that did make me smile. It's amazing how much the UK media focus on the Olympics.

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LOL - well that did make me smile. It's amazing how much the UK media focus on the Olympics.

Bread & circuses.....how we haven't progressed in 2000 years.

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LOL - well that did make me smile. It's amazing how much the UK media focus on the Olympics.

Only a few days now and the BBC will be back focusing on how bad Brxit is for us in their never ending quest for reversal

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LOL - well that did make me smile. It's amazing how much the UK media focus on the Olympics.

It's brainwashing on a mega scale.....it comes to something when you have to watch Russia Today for the news. If Radio 4 goes the way of the rest of the BBC I don't know what I'll do :(

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I don't get it really, because pension funds invest in shares and property as well as bonds. Both of which are still going up in pounds if not dollars.

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It's brainwashing on a mega scale.....it comes to something when you have to watch Russia Today for the news. If Radio 4 goes the way of the rest of the BBC I don't know what I'll do :(

You're kidding?

Radio 4 is dire these days, just as bad as the rest of the BBC for issuing state propaganda as well enforcing the usual multi-kulti, feminist, lgbt, pro immigration, liberal agenda.

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