- Prison Planet.com - http://www.prisonplanet.com -

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 [1]
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.

Full article here [1]

Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/millions-will-see-pensions-slashed-by-up-to-20-as-new-eu-rules-are-set-to-send-annuities-plummeting.html

URLs in this post:

[1] 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

[2] 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

[3] 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

[4] States Warned of $2 Trillion Pensions Shortfall: http://www.prisonplanet.com/states-warned-of-2-trillion-pensions-shortfall.html

[5] 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

[6] Carmen Reinhart: “No Doubt. Our Pensions Are Screwed.”: http://www.prisonplanet.com/carmen-reinhart-no-doubt-our-pensions-are-screwed.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.