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Pension Funds Closed - Pay A Record Bonus


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I find it truely ironic that pension funds are having to close because of huge deficits. If pension funds are run by those high flyers in the city and those pensions have perfomed very poorly causing them to close, why are the city slickers paying themselves massive bonuses.

If I was to write a computer software program for a business, took the businesses money as payment and it didnt work. Why should I pay myself a bonus and slap my self on the back.

It seems crazy to me.

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If I was to write a computer software program for a business, took the businesses money as payment and it didnt work. Why should I pay myself a bonus and slap my self on the back.

Because you made a ton of money for the business by selling crap that doesn't work. You're assuming that the bonus should be related to providing value for money for your customers, not for your boss.

Just look at all the multi-billion pound failed software programs for this government: I think it's a safe bet that no-one working on those lost their bonus.

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Pension funds are in deficit because people are living longer and the real return on long term bonds has fallen which mean the value of the liabilities have increased.

The value of the assets held have also increased substantially but not as much as the liabilities.

Its hardly the asset managers fault.

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I dont understand your point. If an asset manager gets above his benchmark return on the assets he has under control from the pension fund then yes the bank will recieve more fees and the manager will get a better bonus but he has to outperform his benchmark to do this. In this case both the pension trustees who look after the interests of the members and the manager are happy.

If he doesnt outperform he wont be getting a bonus. In this case both are unhappy and the trustees may look for a new bond, equity, currency or whatever manager he is.

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The point is that the people who put money into their pension funds, which they're primarily doing solely because the government forces them to by taxing savings which don't go into pension funds, are getting a poor return for the large amount of money that the pension companies are skimming off their savings.

In a free market, they'd pull that money out and take it elsewhere, but with the tax laws on pensions, that's difficult to impossible. So they're a captive market which the fund managers are looting to pay their fat bonuses. Just another reason why British pensions are a crock of shit.

Edited by MarkG
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What a load of rubbish you can get tracker funds with very low (around 0.5% per annum charges)

If you want a specialist actively managed fund for a personal pension then you have to pay more. If it doesn't perform you can switch funds as easy as pie. You just cant take the money back out as cash and spend it.

Some of the rubbish written about pensions is unbelievable.

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  • 441 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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