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Millions will see pensions slashed by up to 20% as new EU rules are set to send annuities plummeting
Posted By admin On June 19, 2012 @ 9:22 am In Money Watch | Comments Disabled
UK Daily Mail 
June 19, 2012
Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules.
Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown.
The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of ‘safe’ Government bonds.
As the bonds – called gilts – have such low rates of return it will drive down the returns on retirement fund annuities, which are used to pension income.
The reforms are designed to make pension funds safer and reduce the risk of them going bust.
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URLs in this post:
 UK Daily Mail: http://www.dailymail.co.uk/money/pensions/article-2160936/Millions-values-pensions-slashed-20-new-EU-rules-send-annuities-plummeting.html#ixzz1yA3wvj00
 Operation Twist and Shout: Fed Launches Stealth Attack On Pensions: http://www.prisonplanet.com/operation-twist-and-shout-fed-launches-stealth-attack-on-pensions.html
 Report: 82% Chance California Pensions Are Going Under (and You’ll Be Next): http://www.prisonplanet.com/report-82-chance-california-pensions-are-going-under-and-you%e2%80%99ll-be-next.html
 States Warned of $2 Trillion Pensions Shortfall: http://www.prisonplanet.com/states-warned-of-2-trillion-pensions-shortfall.html
 France, Ireland and Hungary Seize Pensions As Part of Move By Governments to Use Long -Term Assets to Fill “Short-Term Deficits”: http://www.prisonplanet.com/france-ireland-and-hungary-seize-pensions-as-part-of-move-by-governments-to-use-long-term-assets-to-fill-short-term-deficits.html
 Carmen Reinhart: “No Doubt. Our Pensions Are Screwed.”: http://www.prisonplanet.com/carmen-reinhart-no-doubt-our-pensions-are-screwed.html
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