New Delhi, Feb 3 () The new lower income tax rates offered in the Budget 2020-21 will leave more cash in the hands of those who do not wish to make compulsory investments to save tax, said Revenue Secretary Ajay Bhushan Pandey.
<p> In an interview with , he said the Budget gives an option to individuals to migrate to a new regime by foregoing their existing exemptions and deductions for a lower tax rate.
</p><p> "We are not saying which one is beneficial, which one is not beneficial. We have provided an option. We have not put restrictions on anyone. This proposal can only benefit somebody and not harm anybody," he said. "So, in this whole proposal, not a single person will be loser."
</p><p> He said taxpayers have an option to stay with the current regime of getting a standard deduction of Rs 50,000 and investing Rs 1.5 lakh in saving schemes and pay 5 per cent, 10 per cent or 30 per cent tax depending on income levels.
</p><p> Alternatively, they can migrate to the new regime and pay lower tax rates without having to invest in any instrument to claim exemption, he said.
</p><p> In the new regime, 5 per cent tax is levied on an annual income between Rs 2.5 lakh and Rs 5 per cent. The tax rate rises to 10 per cent, 15, per cent, 20 per cent and 25 per cent for every Rs 2.5 lakh addition. A 30 per cent tax is charged for income over Rs 15 lakh.
</p><p> "Because the proposal is that we will continue the old scheme and if you find the new scheme attractive, you come or else you don't come. Therefore, there is no scope of confusion or worry," he said.
</p><p> Pandey said the taxpayer will have to choose between old and the new regime at the time of filing return for the next financial year, sometime in July 2021.
</p><p> "When you file I-T return, there will be a choice. If you say choice 1 then the return form in the new system will open and most of your application will be pre-filled. Then, you make appropriate changes and file I-T (return). If you choose the old system, then only that form will open. It is easier to pre-fill the form under new tax structures," he said.
</p><p> He said data show that out of the 5.8 crore individuals who filed income tax returns in the financial year 2018-19, 90 per cent claimed tax deductions of less than Rs 2 lakh, including deductions under Section 80C of the Income Tax Act (for provident fund, PPF, life insurance premium), Section 80D (mediclaim insurance), Section 80CCD(1B) (additional deduction for National Pension Scheme), deduction for housing loan interest and standard deduction.
</p><p> "I am not saying it (new scheme) will benefit everyone. It might benefit 30-40 per cent people. But, even if it is benefiting 30 per cent people then also it is a big thing," he said. "We are giving option to those people who are unable to avail exemptions or deductions. Who are these people -- somebody who has just joined job market, someone who has not decided to buy a house, he does not know how much will be savings, he might be putting little money in PF (provident fund) and insurance. He may find that depending on his income, this new scheme is better."
</p><p> Similarly, for senior citizens living on a pension and who do not have to buy a house or put money in PF, the new regime would be beneficial, he said.
</p><p> The new tax regime is also beneficial for small businessmen and shopkeepers who do not get the benefit of LTC or HRA. 
</p><p> "It is not that our objective was to provide benefit to each and every section of the taxpayer. We have provided option and that should be fine," he said adding the new tax rates would lead to a Rs 40,000 crore dent in government revenues in the next financial year.
</p><p> Individuals having an annual salary income of over Rs 13 lakh and availing deductions of up to Rs 2 lakh will save on their tax outgo if they opt for the new tax regime proposed in the Budget, government sources said on Sunday.
</p><p> For those earning a salary of Rs 12 lakh and less and availing deductions of up to Rs 2 lakh, the old tax system will be beneficial as the tax outgo will be less compared to the proposed new structure.
</p><p> While individuals with an annual salary income of Rs 13 lakh and above will pay Rs 1.43 lakh tax under the proposed tax structure; in the old regime, they would have paid a tax of Rs 1.48 lakh, thereby saving Rs 5,200, a source said.
</p><p> On a salary of Rs 14 lakh a year, savings would be Rs 10,400; and for those with an income of Rs 15 lakh and above, savings would be Rs 15,600, provided the deductions claimed are up to Rs 2 lakh.
</p> In the case of non-salary earners, who do not get a standard deduction of Rs 50,000, the new tax structure is beneficial for those earning Rs 9.5 lakh annually and availing deductions up to Rs 1.5 lakh. They would save Rs 5,200 in their annual income tax outgoing.  JD ANZ  HRS

New tax structure gives option to save tax: Revenue Secy

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/573ee0c2dd08953e738b4778-1144-858/rtr3a4ia.jpg" alt="Kourtney (L) and Kim Kardashian pose with Arcadia Group chief executive Philip Green (C) during a media event before the launch of their clothing line Kardashian Kollection at the British high street retail chain Dorothy Perkins in London November 7, 2012." data-mce-source="REUTERS/Chris Helgren" data-mce-caption="Sir Philip Green with Kim Kardashian in 2012." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI6DKPZ3U&amp;SMLS=1&amp;RW=1440&amp;RH=720#/SearchResult&amp;VBID=2C0FCI6DK2IBD&amp;SMLS=1&amp;RW=1440&amp;RH=720&amp;PN=2&amp;POPUPPN=87&amp;POPUPIID=2C0408TPNQMX3" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI6DKPZ3U&amp;SMLS=1&amp;RW=1440&amp;RH=720#/SearchResult&amp;VBID=2C0FCI6DK2IBD&amp;SMLS=1&amp;RW=1440&amp;RH=720&amp;PN=2&amp;POPUPPN=87&amp;POPUPIID=2C0408TPNQMX3">REUTERS/Chris Helgren</a></span></p><p class="caption">Sir Philip Green with Kim Kardashian in 2012.</p></div><p></p></div></div>I never thought I'd say this, but I'm starting to feel sorry for the billionaire who is the current "unacceptable face of capitalism."</p><p>Retail tycoon Sir Philip Green has been <a href="http://uk.businessinsider.com/bhs-collapse-pressure-on-sir-philip-green-and-darren-chappell-2016-4">pelted by MPs</a> and the press ever since <a href="http://uk.businessinsider.com/bhs-in-administration-11000-jobs-risk-2016-4">BHS collapsed last month</a>, putting 11,000 jobs at risk. Now those workers face cuts to their pensions too.</p><p>But the pension cuts aren't Green's fault. Surprisingly, the Bank of England is responsible for that.</p><p>Some history: Green owned the department store until last year when he sold it for £1 to Dominic Green, a three times bankrupt former racing driver with little retail experience.</p><p>Everyone is angry about this sale - how could Green have ever thought it was a good idea? But worse than that is the hole in BHS's pension scheme. When the retailer went under, the company's scheme showed a deficit - it owes more it can pay to retired workers - which pushed it into the arms of the "Pensions Lifeboat", the state-backed Pension Protection Fund (PPF), with a deficit of £275 million.</p><p>The PPF will now make sure the scheme's 20,000 members get their pensions, but members who have not yet reached retirement age will have to take a 10% haircut on their payouts.</p><p>Now there are calls for Sir Philip to meet the pension shortfall. The government Pensions Regulator is pursuing an anti-avoidance action against Arcadia, his company, to try and claw back money for the scheme. There have even been calls for Sir Philip, <a href="http://www.bbc.co.uk/news/business-36139828">dubbed the "unacceptable face of capitalism" by MP Richard Fuller</a>, to be<a href="http://uk.businessinsider.com/sir-philip-green-calls-for-frank-field-to-resign-from-bhs-investigation-over-pensions-row-2016-5"> stripped of his knighthood.</a></p><p>The popular narrative runs that Sir Philip profited when the going was good, <a href="https://www.theguardian.com/business/2016/apr/25/bhs-philip-green-family-millions-administration-arcadia">taking around £400 million in dividends from BHS in the early 2000s</a>. But he failed to re-invest in the chain, letting it rot, and then simply washed his hands of his obligations to the pension scheme when things got tough, via the £1 sale. He walked away from his commitments.</p><p>Except this narrative glosses over one massive, crucial event - the 2008 financial crisis and what the Bank of England did in response.</p><h2>'Zombies' abound</h2><p>While BHS was no doubt underinvested in, it was the financial crisis that caused BHS' pension crisis. <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/apr/25/sir-philip-green-must-do-more-to-sort-out-the-bhs-pension-mess">The Guardian has a good graphic on this</a>, showing that in 2008 the scheme was actually running a £3.8 million surplus. A year later - with stocks and bonds around the world plummeting - a huge £137.9 million deficit appeared.</p><p>This is not because cash-strapped consumers stopped shopping at BHS. It's because the investment environment fundamentally changed post-2008. To keep the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> economy liquid in the crisis, between August 2008 and March 2009, <a href="http://news.bbc.co.uk/1/hi/business/7925620.stm">the Bank of England cut the base interest rate from 5% to a record low of 0.5%</a>, where it has stayed ever since. Those BofE's low rates are still propping up the economy today.</p><p>This was a disaster for pension schemes, however. Among the worst hit was the type BHS had - a so-called "defined benefit" (DB) scheme. DB schemes promise a guaranteed payout to pensioners when they retire, £30,000 a year, for example. Often this is also linked to things like the retail price index, meaning that final payout must rise with inflation.</p><p>The problem arises in the difference between the amount of money set aside to cover eventual pensions and the obligations. The entire DB scheme is a bet that today's investments will always come good, forever, and cover tomorrow's guaranteed payments. Schemes had been banking on annual returns from their investments of at least 5%. Suddenly, with low interest rates, and stocks going through the post-crisis trough, it's down to 0.5% as a base. That means they have to put up a lot more new money to get the returns they need.</p><p>Add to this the fact that the businesses backing up these schemes suffered a downturn at the same time as interest rates collapsed, meaning they have less cash to put into these schemes, and you've got a pensions crisis.</p><p><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/573ee0c2dd08953e738b4779-1044-783/rtx1u53h.jpg" alt="zombie" data-mce-source="REUTERS/Hannibal Hanschke" data-mce-caption="A woman takes part in a zombie walk during Halloween celebrations in Berlin, Germany, October 31, 2015." /><p class="source"><span>REUTERS/Hannibal Hanschke</span></p><p class="caption">Hundreds of 'zombie' schemes exist, simply servicing their deficits.</p></div><p></p></div></div>BHS is indicative of a wider problem in the pensions industry, not a flagrant example of cowboy capitalism run amok. A recent study <a href="http://www.scotsman.com/news/politics/pension-crisis-looming-as-uk-firms-face-800bn-black-hole-1-4084637">estimated the black hole in the nation's pensions schemes is £800 billion</a>, despite employers pumping in £160 billion since 2006.</p><p>In his submission to the Parliamentary inquiry on BHS, ex-Pension Minister Steve Webb said there are <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">hundreds of "zombie" DB pension schemes in the UK that look a lot like BHS.</a></p><p>People are living longer, and therefore increasing pension schemes liabilities, plays a part in the black hole. But the biggest cause is low interest rates.</p><p>Webb told BI: "A dose of high inflation would go through this like a dose of salt. Higher interest rates and inflation would very quickly change the situation. But we're going to have a sizeable deficit for years to come.</p><p>"Clearly there is a problem here and that ain't going to change. Other things being equal, there's a set of things out there where unless something turns in the economy dramatically or interest rates go up, the deficit is going to get bigger not smaller and everyone else is going to have to pick up those deficits."</p><h2>'If you don't pull the plug a bunch of British companies will have to pay millions of pounds extra'</h2><p>Economists complain that low interest rates rob savers, and this is perhaps the biggest example. But what could the Bank of England do? In the grand scheme of things, creating a pensions crisis down the road is probably better than letting the economy collapse into a new Great Depression.</p><p>Not much is being done to tackle the problem either, as Webb explained to me. He thinks in many cases the best thing to do would be to forcibly wind up failing "zombie" schemes before they reach the actual point of failure.</p><p>"The problem is, running their course probably means going into the PPF anyway but with a bigger deficit. By definition, that means somebody has got to pay and that in effect is the sponsoring employers of the remaining DB schemes." The PPF is funded through a levy on healthy DB schemes.</p><p>"If you don't pull the plug, a bunch of British companies will have to pay millions of pounds extra. That's coming out of profits for their business, wages for their staff, etc. It is politically very difficult to do but for the wider public good, that might be the right thing to do."</p><p>It's clear then that these DB schemes are a millstone around the neck of many businesses, as they proved to be for BHS, and <a href="http://uk.businessinsider.com/uk-government-looking-to-ringfence-tata-steels-15-billion-pension-plan-2016-5">as they proved to be for Tata Steel</a>.</p><h2>'Project Thor'</h2><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54d09a49dd0895f54e8b45f9-3744-2810/thor-marvel-chris-hemsworth.jpg" alt="Thor Marvel Chris Hemsworth" data-mce-source="AP Photo/Paramount Pictures-Marvel Studios, Zade Rosenthal" /><p class="source"><span>AP Photo/Paramount Pictures-Marvel Studios, Zade Rosenthal</span></p><p class="caption">The regulator reportedly blocked 'Project Thor' - a 2012 rescue plan that would have given BHS pensioners a better deal than they have now.</p></div><p></p></div></div>What's more, not only is BHS indicative of a wider pensions crisis, it looks increasingly clear that Sir Philip Green and Arcadia were active in trying to tackle the deficit.</p><p>BHS's pension trustees approved a 23-year recovery plan to get the scheme back in the black in 2009, a length described as "a-typical" by the government's pensions regulator. So far, so eyebrow raising.</p><p>But details have been <a href="http://uk.businessinsider.com/report-the-pensions-regulator-stopped-bhs-plan-project-thor-2016-5">emerging about "Project Thor,"</a> a plan in 2012 to reduce the pension liabilities by buying out some members and moving others to a new vehicle with an £80 million cash injection from Sir Philip. <a href="http://uk.businessinsider.com/report-the-pensions-regulator-stopped-bhs-plan-project-thor-2016-5">The Pensions Regulator apparently stymied this plan.</a> Clearly, Sir Philip Green was not as fast and loose with BHS and its pensioners as has been made out.</p><p>All of this is not to say that Sir Philip and Arcadia do not have questions to answer and possible obligations to meet.</p><p>The £1 sale to an ex-bankrupt racing driver with no experience raises serious questions about due diligence. Since no recovery plan was reached prior to the sale, perhaps the billionaire has some duty to meet the deficit. And BHS was <a href="http://uk.businessinsider.com/pictures-show-why-bhs-shows-is-in-such-a-mess-2016-5">clearly underinvested in for years</a> while the wider Arcadia group was making huge profits.</p><p>But let's stop pretending that, <a href="https://www.theguardian.com/business/2003/mar/04/supermarkets">for all his expletive-laden outbursts</a> and <a href="http://www.thesundaytimes.co.uk/sto/news/focus/article1691198.ece">bullying</a>, Sir Philip Green is the pure evil pantomime villain in this. When it comes to the pension deficit, he played the cards he was dealt.</p><p>In this case, the Bank of England stacked the deck.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/merrill-lynch-wall-street-banks-finance-2016-5">How Merrill Lynch changed the way people are paid on Wall Street</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="o5aThjMzE6B0rd_VIYnQsLwbNdOt0AJU" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'o5aThjMzE6B0rd_VIYnQsLwbNdOt0AJU',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The Bank of England is to blame for the BHS pension crisis

<img class="gwt-Image" src="/photo/50043303.cms" />Around 97% of people above 18 years of age across metropolitan cities, Tier-2 and Tier-3 towns either have a savings or a current account and mere 3% of the people invested in commercial properties.<br />
 <br />
This was revealed in an ET Wealth Retail Investors’ &amp; Consumers’ Survey (OICS) 2015 report, which was launched by MoS Finance Jayant Sinha while he unveiled a new website of ET Wealth.<br />
 <br />
The survey further stated that 53% of them preferred to invest in an apartment or an independent house/plot and 55% of them had taken home loans.<br />
 <br />
This survey by ETW-RICS profiled 10,000 consumers in a bid to help product managers and marketers in the BFSI and consumer segments understand their target customers in a better way.<br />
 <br />
The survey stated that 87% of the respondents, who were spread across metropolitan cities, Tier-2 and Tier-3 towns, owned one or more of the investment products such as chit funds, bonds, PPF, mutual funds, shares, bank and company fixed deposits.<br />
 <br />
Interestingly, 49% of the respondents regarded insurance as an investment product and claimed to have bought insurance for investment purposes only.<br />
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“This is an excellent initiative to educate people on savings,” said Sinha.<br />
 <br />
In a dynamic economy, changing consumer trends and habits do not get captured to enable marketers to take appropriate product decisions. <br />
<br />
(Image: Indiatimes)<br />


97% people above 18 years have a savings account; only 3% invest in realty: Survey

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="UNICEF" title_caption="" It="" is="" the="" increase="" in="" deaths="" at="" older="" ages="" mostly="" post="" retirement="" which="" would="" impact="" pension="" schemes="" positively.="" class="zoomin" href="https://static-ssl.businessinsider.com/image/565c3685dd0895b0518b45ca-960/unicef-grim-reaper-ep.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/565c3685dd0895b0518b45ca-723/unicef-grim-reaper-ep.jpg" alt="unicef grim reaper ep" data-mce-source="UNICEF" data-link="https://www.youtube.com/watch?v=YOPOqy7L3Po" /></a><p class="source"><span><a href="https://www.youtube.com/watch?v=YOPOqy7L3Po">UNICEF</a></span></p><p class="caption">"It is the increase in deaths at older ages (mostly post retirement) which would impact pension schemes positively."</p></div><p></p></div></div>The number of British people who die every year went up to about 530,000 in 2015, and that's good news for investors in the stock of companies with pension-fund deficits, according to Gordon Aitken, an RBC Capital Markets equity analyst. The increase in the number of deaths rose from a low of about 485,000 deaths in 2011.</p><p><span style="line-height: 1.5em;">It is important to be clear that Aitken was <em>not</em> celebrating those deaths. Rather, in a July 7 note to investors, he was explaining how the death rate affects companies that are required to pay more cash into their under-funded pension plans.</span></p><p>When old-fashioned "defined benefit" pension plans fall into deficit, they are sometimes required by The Pensions Regulator or the Pensions Protection Fund to increase the cash payments to make up the gap. Those increased cash payments leave less money for stock dividends, earnings on the bottom line, or investment in future growth.</p><p>Unfunded pension deficits are a growing problem, especially as the Bank of England just lowered the interest rate. Pensions are often funded by gilts and bonds that rely on interest payments. So the BofE's decision will likely worsen the pension "black hole," Aitken's note says. The total deficit of the roughly 6,000 British companies that have <a href="http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/PPF_7800_august_16.pdf">unfunded pension liabilities is £408 billion, according to the PPF</a>.</p><p>However, the fact that British people are dying more numerously - and thus claiming less of their pensions - will have a positive effect on pension funds, Aitken wrote:</p><p style="padding-left: 30px;"><strong>Importantly the increase in death is heavily skewed to older ages</strong></p><p style="padding-left: 30px;">Note it is the increase in deaths at older ages (mostly post retirement) which would impact pension schemes positively. Any change in deaths at earlier ages is less relevant as pension benefits are typically only provided post-retirement.</p><p>Here's a chart:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="RBC Capital Markets" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/57a9b877dd089553398b49b7-960/screen shot 2016-08-09 at 11.22.07.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/57a9b877dd089553398b49b7-972/screen shot 2016-08-09 at 11.22.07.png" alt="RBC" data-mce-source="RBC Capital Markets" /></a><p class="source"><span>RBC Capital Markets</span></p></div><p></p></div></div></p><p>We are dying more because life expectancy for men has fallen by two months, and "the expectation of life at age 65, which is relevant for insurers, has fallen 4 months," Aitken says. Dementia and Alzheimer's are driving the increased death rate.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/malcolm-gladwell-revisionist-history-donate-princeton-vassar-bowdoin-tipping-point-outliers-blink-2016-7">MALCOLM GLADWELL: 'Anyone who gives a single dollar to Princeton has completely lost their mind' </a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tlNzV5NDE68LblejgkI-6sByYCuoiDZ7" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'tlNzV5NDE68LblejgkI-6sByYCuoiDZ7',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

RBC analyst is upbeat about an increase in the death of pensioners

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57d90970dd0895d0308b4cd1-1907/rtr2s86y.jpg" alt="A woman puts on a flower during celebrations after the International Day for Elderly People in Lima October 4, 2011. About three thousand people from cities around the country participated in the march performing dances and wearing traditional costumes." data-mce-source="REUTERS/Enrique Castro-Mendivil" data-mce-caption="A swtich from RPI to CPI would cost pensioners an average of £20,000." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;PN=2&amp;POPUPPN=100&amp;POPUPIID=2C04080OUZF72" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;PN=2&amp;POPUPPN=100&amp;POPUPIID=2C04080OUZF72">REUTERS/Enrique Castro-Mendivil</a></span></p><p class="caption"> A switch from RPI to CPI would cost pensioners an average of £20,000. </p></div><p></p></div></div>Britain is in the midst of an unprecedented pensions crisis, with figures out this week showing the funding deficit is approaching half a trillion pounds.</p><p>The gap between how much companies have promised to pay employees when they retire and how much they will have when that happens is estimated by the Pension Protection Fund (PPF) at £459 billion ($606 billion). Graham McLean, head of pension scheme funding at Willis Towers Watson, said wearily in an emailed statement: "Another month, another record <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> pension deficit," giving you an idea of how bad the problem is.</p><p>Graham McLean, head of pension scheme funding at Willis Towers Watson, said wearily in an emailed statement: "Another month, another record UK pension deficit," giving you an idea of how bad the problem is.</p><p>Pensions are in such a bad shape because of low interest rates. Funds invest money hoping to make a certain level of return that, over time, will cover them to pay out on pensions. But interest rates are at a rock-bottom 0.25%, making returns hard to find, and many bonds, the favoured investment instrument of funds, are offering negative returns - you actually lose money investing in them.</p><p>That is bad news for anyone with a defined benefit (DB) pension scheme, which promises retirees a set level of inflation-linked payout. It is <a href="http://uk.businessinsider.com/the-argument-for-final-salary-pension-schemes-being-cut-2016-8">the gold standard of pensions</a> and companies do not really offer them anymore because they are such a liability. Even in climates like today's, the business is still bound to give pensioners a certain level of inflation-linked retirement income.</p><h2>'Zombie' companies</h2><p>Companies with DB schemes currently face two unpalatable choices: shovel money that could be used for wage growth and investment into the pension schemes to meet the shortfall; or simply watch their deficits grow.</p><p><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57d90970dd0895d0308b4cd2-2083/rtr1u4io.jpg" alt="A man made up to look like a zombie takes part in a bid to break the world record for the " data-mce-source="REUTERS/Mick Tsikas" data-mce-caption="Companies can become 'zombies' - existing only to pay pension liabilities." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I0NY3C&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I0N5XE&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;POPUPPN=44&amp;POPUPIID=2C04082SA7E1J" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I0NY3C&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I0N5XE&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;POPUPPN=44&amp;POPUPIID=2C04082SA7E1J">REUTERS/Mick Tsikas</a></span></p><p class="caption">Companies can become 'zombies' - existing only to pay pension liabilities.</p></div><p></p></div></div>The first option could <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">turn companies into so-called "zombies,"</a> existing only to meet pension liabilities.</p><p>The second option might sound reckless but actually is not so crazy. <a href="http://uk.businessinsider.com/sir-philip-green-bhs-pension-crisis-bank-of-england-interest-rates-2016-5">Former Pensions Minister Steve Webb told Business Insider earlier this year</a>: "Higher interest rates and higher inflation would very quickly change the situation." If macroeconomic conditions change, things could rapidly improve.</p><p>But the problem is, post-Brexit, it does not look like interest rates are rising any soon. In fact, <a href="http://uk.businessinsider.com/bank-of-england-mark-carney-interest-rate-decision-2016-8">the Bank of England cut interest rates for the first time in 7 years, from 0.5% to 0.25%.</a></p><p>That was an effort to boost investment and stop the economy falling into recession, but in his efforts to stabilise the economy, <a href="http://uk.businessinsider.com/britain-pension-crisis-explained-bank-of-england-2016-8">Bank of England governor Mark Carney has made the pensions problem worse.</a> He is like a doctor who has stitched up a bleeding wound but left a pair of scissors in the body that will cause problems down the line.</p><h2>The solutions</h2><p>Can anything be done to tackle the black hole?</p><p>The most popular option among businesses is a switch in the measure of inflation used to calculate payouts. DB pensions currently rise in line with retail price inflation (RPI), but many companies want to switch to consumer price inflation (CPI), a generally lower measure.</p><p><a href="http://uk.businessinsider.com/government-considers-moving-tata-steel-pension-plan-form-cpi-to-rpi-2016-5">This was the plan put forward by Tata Steel</a>, the down and out steelmaker trying to sell itself. Management hoped that it could make itself more attractive to a potential buyer by reducing the pension liability they would have to take on.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57d90970dd0895d0308b4cd3-688/indias-tata-motors-to-rename-hatchback-that-sounds-like-zika.jpg" alt="Tata Motors logos are seen at their flagship showroom before the announcement of their Q3 results in Mumbai February 14, 2013. REUTERS/Vivek Prakash" data-mce-source="Thomson Reuters" data-mce-caption="Tata Motors logos are seen at their flagship showroom before the announcement of their Q3 results in Mumbai" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">Tata Steel's attempt to switch from RPI to CPI looks like it has failed.</p></div><p></p></div></div>However, it looks like Tata Steel will lose its bid. <a href="http://www.thetimes.co.uk/edition/business/tata-loses-bid-to-cut-pension-payout-xlj686zns">The Times reports on Wednesday</a> that actuaries speaking to the government say it is off the table after former Business Minister Sajid Javid, a cheerleader for the plan, got moved along in Theresa May's reshuffle.</p><p>Many people strongly oppose a switch from RPI to CPI and analysis by pension consultancy Hymans Robertson (originally done for the Financial Times but seen by BI) shows such a switch would cost the average DB pensioner £20,000.</p><p>This is considerably better than the £45,000 haircut pensioners on average take if their company goes bust and the scheme falls into the state-backed "pensions lifeboat," the Pensions Protection Fund. But still, pensioners would ideally not want a haircut on payouts at all.</p><p>Even if all the DB schemes in Britain were given free reign to switch from RPI to CPI it would not solve the problem. Such a switch would only shave £175 billion off the deficit, according to Hymans Robertson. That is less than half of the total deficit.</p><h2>'Ride roughshod over schemes'</h2><p>Hymans Robertson has two other proposals to tackle the pensions black hole. The first would allow pension scheme to reduce reevaluations and pension increases to the statutory minimum, even if member's had previously been promised a better deal.</p><p>This would "ride roughshod over schemes trust deed and rules, but provide an even bigger release of pressure," says Hymans Roberston's head of corporate consulting Jon Hatchett. He and his team estimate this could shave up to £350 billion off the pension deficit.</p><p>Then, finally, there is the nuclear option. Hatchett explains:</p><p style="padding-left: 30px;">"This would be to enable schemes in dire straits to stop paying pension increases for a limited time, until scheme funding and business performance recover. This is known as 'conditional indexation'. Allowing struggling schemes to temporarily stop paying pension increases could help them get back on track while avoiding permanent cuts to members' pensions. It could be a way to create the breathing space to allow businesses to turn themselves around rather than being pulled down by struggling pension schemes.</p><p style="padding-left: 30px;">"This would be the 'least worst' option for members. The cutbacks only apply when full benefits are not affordable, and members at least retain the chance of getting their increases back if the scheme's or sponsor's position improves. For many that's likely to be a better outcome than entering the PPF where they'd see an irreversible cut in value of £45,000 over the course of their retirement."</p><p>While it might be the "least worst" for members, it is highly controversial and Hatchett says it would have to "come with a hefty risk warning and would need watertight safeguards." This includes a suspension of dividends while the pension freeze is in effect.</p><p><div class="KonaFilter image-container display-table float_left float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57a2d662dd08956a398b4b67-2400/rtx2jrmb.jpg" alt="Bank of England governor Mark Carney" data-mce-source="Reuters/Dylan Martinez" /><p class="source"><span>Reuters/Dylan Martinez</span></p><p class="caption"> The Bank of England is more worried about stimulated economic growth than tackling the pension black hole. </p></div><p></p></div></div>The problem is, as Willis Towers Watson's McLean says: "Policymakers do not appear to be singing from the same hymn sheet.</p><p>"The Pensions Regulator has said that employers should typically expect to increase contributions so that schemes do not have to stay in deficit for longer, though that was before the big increase in deficits since the referendum," he says in an emailed statement.</p><p>"Meanwhile, the Bank of England says that higher corporate pension contributions could stifle wage growth, dividends or investment, but that that this need not be a big worry because many companies can simply extend deficit recovery periods instead of contributing more."</p><p>Policy makers are stuck between a rock and a hard place, torn between concerns over growth, in a precarious state post-Brexit, and concerns over the pensions black hole. Both are interlinked but require seemingly opposite actions.</p><p>Right now growth is winning, but whichever way you look at it the pensions situation is bad.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/grant-cardone-money-mistake-millionaire-finance-2016-9">Self-made millionaire reveals the biggest money mistake you might be making</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="5ndWJvNTE6dTp1-ts1dr-VyPMtF3vtKC" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '5ndWJvNTE6dTp1-ts1dr-VyPMtF3vtKC',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The top plan to tackle Britain's pension crisis would costs retirees &#163;20,000 each - and still wouldn't solve things

10 best tax-saving investments

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57ad7637dd0895c41d8b4aaa-805/rtr4624p.jpg" alt="A person dressed as an astronaut walks past a man stopping traffic on a pedestrian crossing outside the Sydney Exhibition Centre September 13, 2014 where the science-fiction convention called 'Oz Comic-Con' is currently being held. The two-day convention showcases 'pop culture', and includes appearances by actors from science-fiction movies and television shows." data-mce-source="REUTERS/David Gray" data-mce-caption="Lesley Titcomb wants a veto on deals involving distressed pension schemes." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5DTDWHM&amp;SMLS=1&amp;RW=1440&amp;RH=720#/SearchResult&amp;VBID=2C0FCI5DTDC43&amp;SMLS=1&amp;RW=1440&amp;RH=720&amp;PN=2&amp;POPUPPN=97&amp;POPUPIID=2C0408W5XRS_K" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5DTDWHM&amp;SMLS=1&amp;RW=1440&amp;RH=720#/SearchResult&amp;VBID=2C0FCI5DTDC43&amp;SMLS=1&amp;RW=1440&amp;RH=720&amp;PN=2&amp;POPUPPN=97&amp;POPUPIID=2C0408W5XRS_K">REUTERS/David Gray</a></span></p><p class="caption">Lesley Titcomb wants a veto on deals involving distressed pension schemes.</p></div><p></p></div></div>The CEO of The Pensions Regulator (TPR) <a href="https://www.ft.com/content/6da29a8e-5ed5-11e6-bb77-a121aa8abd95">has told the Financial Times</a> she wants the watchdog to have powers to veto takeovers involving distressed pension schemes to stop another under-funded pension disaster on the scale of BHS.</p><p>TPR CEO Lesley Titcomb told the paper:</p><p style="padding-left: 30px;">"Another BHS-type sale could happen because of clearance being voluntary. If we are not approached then there is nothing we can doing about it. That is why one of the areas we need to look at is whether, in certain circumstances, corporate transactions should come to us."</p><p><a href="http://uk.businessinsider.com/bhs-in-administration-11000-jobs-risk-2016-4">BHS collapsed into bankruptcy administration in April</a> and its pension scheme fell into the state-backed "pensions lifeboat", the Pension Protection Fund (PPF). The scheme had a <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">funding deficit estimated at around £275 million</a>. The near 20,000 members of the BHS' scheme now <a href="http://uk.businessinsider.com/report-the-pensions-regulator-stopped-bhs-plan-project-thor-2016-5">face a "haircut" on their eventual payouts estimated at 10%.</a></p><p>Sir Philip Green, the retail billionaire who until last year owned BHS, has been <a href="http://uk.businessinsider.com/bhs-inquiry-mps-report-accuses-sir-philip-green-and-dominic-chappell-of-systematic-plunder-2016-7">blamed by MPs for failing to properly invest in both BHS and the pension scheme under his ownership</a>. MPs were also highly critical of his decision to sell the failing chain to <a href="http://uk.businessinsider.com/bhs-inquiry-dominic-chappell-faces-mps-2016-6">Dominic Chappell, a two-time bankrupt with no former retail experience.</a></p><p><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/575a8a02dd0895d93f8b4998-1031/lesley titcomb.jpg" alt="lesley titcomb" data-mce-source="Parliament.tv" data-mce-caption="Lesley Titcomb, head of the Pensions Regulator." /><p class="source"><span>Parliament.tv</span></p><p class="caption">Lesley Titcomb, head of the Pensions Regulator, giving evidence to the BHS inquiry.</p></div><p></p></div></div>Titcomb told MPs during their inquiry into BHS' collapse that the watchdog had tried to interrogate the deal's implications for the pension scheme but <a href="http://uk.businessinsider.com/sir-philip-green-bhs-pension-fund-2016-7">Sir Philip Green resisted "moral hazard" questions</a>, which looked at how much money had been taken out of the business. Titcomb said that the regulator <a href="http://uk.businessinsider.com/bhs-inquiry-evidence-pension-regulator-protection-fund-2012-2016-5">only learned of the final sale by reading about it in the press.</a></p><p>Titcomb added in the FT interview that potential veto powers would be relatively limited, as they would only apply to deals involving underfunded defined benefit pension schemes, of which there are a dwindling number. Titcomb says:</p><p style="padding-left: 30px;">"We are talking about a limited set of circumstances here, perhaps where there is underfunding [of the pension]. I think we do need to recognise, though, that any such power has to be proportionate. To require all corporate transactions to come through us would gum up the system. Cases like BHS are rare."</p><p>TPR is now pursuing action against Sir Philip Green's Arcadia Group to <a href="http://uk.businessinsider.com/bhs-inquiry-evidence-pension-regulator-protection-fund-2012-2016-5">try and claw back money to fund the pension deficit</a>. Labour MP Frank Field, who co-chaired the Parliamentary inquiry into BHS, has also <a href="http://uk.businessinsider.com/bhs-sir-philip-green-stripped-knighthood-frank-field-2016-7">repeatedly called for Sir Philip to write a cheque to cover the shortfall.</a> Green insists he is working with the regulator to find a solution.</p><h2>A £900 billion problem</h2><p>While Titcomb says "Cases like BHS are rare," shortfalls in defined benefit pension schemes are a growing problem in Britain.</p><p>Former Pensions Minister Steve Webb warned in his submission to the BHS inquiry that there are <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">"many hundreds of 'zombie' schemes" in the UK that have "no realistic chance of the pensions promises being met."</a></p><p>These are all defined benefit schemes. Defined benefit schemes are pension schemes where members are promised a certain level of payout once they retire. These are increasingly unworkable because people are living longer, meaning employers need to meet these payout levels for longer, and because interest rates are in the toilet, making earning the money to pay the pensions all but impossible.</p><p>Most companies are closing or no longer offering defined benefit pension schemes to employees (<a href="https://www.ft.com/content/97c592d8-5c93-11e6-bb77-a121aa8abd95#axzz4GkigtUWR">Royal Mail is in talks to close its scheme</a>) but for those companies that still have to service one, the scheme is a millstone around its neck.</p><p>The collective deficit in Britain's defined benefit pension schemes is estimated at £900 billion and <a href="http://uk.businessinsider.com/brexit-economic-impact-britains-bonds-gilts-pensions-2016-8">looks set to only get worse thanks to negative yields</a> and interest rates <a href="http://uk.businessinsider.com/bank-of-england-mark-carney-interest-rate-decision-2016-8">falling further to 0.25%</a>. But the Bank of England has bigger things to worry about right now than the effects of its policies on pension schemes - namely, keeping the economy afloat.</p><p>Webb told BI in May: <a href="http://uk.businessinsider.com/sir-philip-green-bhs-pension-crisis-bank-of-england-interest-rates-2016-5">"A dose of high inflation would go through this like a dose of salt. Higher interest rates and inflation would very quickly change the situation. But we're going to have a sizeable deficit for years to come."</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/real-estate-bizarre-house-san-francisco-california-suburb-2016-7">No one wants to buy this bizarre house in a wealthy San Francisco suburb</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="hmdzcxNTE64DFq4MmhnQPHwo6CHUK3mS" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'hmdzcxNTE64DFq4MmhnQPHwo6CHUK3mS',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Pensions watchdog warns another BHS-style disaster could happen unless MPs act

<img class="gwt-Image" src="/photo/38129055.cms" /><br /> Union <keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> presented his first budget today. He started his budget speech with a reality check amid high expectations by saying no miracle should be expected in the very first budget and he expected growth to rise to 7-8% over three to four years. He also said that <em>achche din</em> will definitely come but it will not happen overnight and will take some time.<br />
<br /> During his budget speech, Jaitley asked Speaker <keyword id="6354934" type="PERSON" weightage="100" keywordseo="Sumitra-Mahajan">Sumitra Mahajan</keyword> for a five-minute break, which was granted. It was perhaps for the first time that a finance minister asked for a break while presenting the budget. Later, he complained of breathlessness when he resumed his speech and was asked by the Speaker to deliver the speech sitting down.<br />
<br />
Jaitley said the people below poverty line want to raise themselves above it. While higher growth is important, we cannot ignore the fact that the poor suffer the most. Emphasising on poverty alleviation, he said slum development would be included in corporate social responsibility (CSR) activities.<br />
<br />
Here are the key points of his maiden budget speech:<br />
<br />
· No changes in tax rates for individuals<br /> · Personal <keyword id="6354751" type="COMPANY" weightage="100" keywordseo="Income-Tax">income tax</keyword> limit increased by Rs 50,000 for people below 60 years<br />
· Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2 lakh to Rs 2.5 lakh<br />
· Investment limit under 80C raised from Rs 1 lakh to Rs 1.5 lakh<br />
· Rs 100 crore for modernisation of madrasas<br />
· Development of Metro rails in PPP mode; Rs 100 crore set aside for Metro scheme in Ahmedabad and Lucknow<br />
· Rs 500 crore for digital India programme to ensure broadband connectivity at village level, transparency in governance<br /> · Govt proposes to set up five new IIMs, four new <keyword id="40458" type="COMPANY" weightage="100" keywordseo="AIIMS">AIIMS</keyword> and five new IITs<br />
· Jaitley announces 'Beti padhao, beti badhao yojana', sets aside Rs 100 crore for this<br />
· 15 new Brail presses to be established and revival of 10 existing announced<br />
· Rs 200 crore set aside to support Gujarat govt in the Sardar Patel statue installtion: Jaitley<br />
· Sanitation: Government intends to cover every household in the country by 2019<br />
· Govt to provide finance to five lakh landless farmers through NABARD<br />
· Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues<br />
· Trade facilitation centre to promote handloom work in Varanasi<br />
· New airports to be developed through PPP mode in tier-II and tier-III cities<br />
· Rs 4200 crore set aside for 'Jal Marg Vikas' project on river Ganga connecting Allahabad to Haldia, over a distance of 1620km<br />
· Retrospective tax amendment to be undertaken with extreme caution<br />
· Rs 3600cr set aside for National Rural Drinking Water<br />
· Rs 2.29 lakh crore allocated for defence sector<br />
· Hope to implement goods and service tax this year<br />
· Annual PPF ceiling to be raised to Rs 1.5 lakh, from Rs 1 lakh<br /> · FM announces '<keyword id="2412683" type="UNKNOWN" weightage="100" keywordseo="Namami-Ganga">Namami Ganga'</keyword> - an integrated Ganga Development Project; Rs 2037 crore set aside for this<br />
· Sports university to be set up in Manipur, Rs 100 crore to be provided for this<br />
· FDI in insurance to be hiked to 49%<br />



Union Budget 2014: 25 Key Points

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5731e033dd0895d7128b486d-1360-1020/rtx1ugwq.jpg" alt="Revellers with their bodies and faces painted attend the " data-mce-source="REUTERS/Paulo Whitaker" data-mce-caption="Watch out: there are 'zombie' pension schemes out there." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZ3HYWLBC&amp;SMLS=1&amp;RW=1719&amp;RH=902#/SearchResult&amp;VBID=2C0BXZ3HYWLBC&amp;SMLS=1&amp;RW=1719&amp;RH=902&amp;POPUPPN=4&amp;POPUPIID=2C0BF1OHZZ22G" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZ3HYWLBC&amp;SMLS=1&amp;RW=1719&amp;RH=902#/SearchResult&amp;VBID=2C0BXZ3HYWLBC&amp;SMLS=1&amp;RW=1719&amp;RH=902&amp;POPUPPN=4&amp;POPUPIID=2C0BF1OHZZ22G">REUTERS/Paulo Whitaker</a></span></p><p class="caption">Watch out: there are 'zombie' pension schemes out there.</p></div><p></p></div></div>The <a href="http://uk.businessinsider.com/bhs-inquiry-evidence-pension-regulator-protection-fund-2012-2016-5">details of BHS' pension black hole were laid out to MPs on Monday</a>, with the scheme suffering a shortfall of up to £300 million.</p><p>MPs are <a href="http://uk.businessinsider.com/philip-green-will-face-2-parliament-grillings-over-the-collapse-of-bhs-2016-5">probing the collapse of BHS last month</a>, asking how appropriate the sale of the chain by retail billionaire Sir Philip Green for £1 last year was and whether the tycoon should be made to pay for the pension shortfall.</p><p>But the inquiry has also exposed evidence showing that there are hundreds of other schemes teetering on the brink like BHS was.</p><p>The department store could be the tip of the iceberg when it comes to a pensions crisis.</p><p><a href="http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/work-and-pensions-committee/pension-protection-fund-and-the-pensions-regulator/written/32979.html">Former Pensions Minister Steve Webb says in written evidence to the joint Work and Pensions Select Committee and Business Select Committee</a> inquiry into the collapse of BHS (emphasis ours):</p><p style="padding-left: 30px;">Analysis of all the remaining DB [defined benefit] schemes suggests that there <strong>may be many hundreds of 'zombie' schemes</strong>. These are schemes where there is <strong>no realistic chance of the pensions promises being met</strong>. They will generally have large deficits, long recovery plans, and a weak sponsoring employer. These schemes are generally 'drifting' towards the PPF [Pension Protection Fund] but unless an insolvency event occurs, they continue to limp along from year to year. The employer may be meeting his annual payments, but the deficit can often be going up rather than down for the reasons discussed earlier.</p><p>Alan Rubenstein, the CEO of the state-sponsored Pension Protection Fund which takes on pensions schemes of failed businesses, told MPs yesterday that there are currently around 5,000 pension schemes across the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> in deficit, with 600 to 1,000 at serious risk.</p><p>The issue is with so-called "defined benefit" pension schemes, a private pension scheme that has been pretty much phased out now. The schemes promise members a guaranteed certain income when they retire.</p><p>A deficit should not be fatal - simply top it up and it continues as normal - and these schemes worked fine in the past. But two factors have combined to make them totally unworkable in recent years.</p><p>Firstly, people are living longer. That means you need to pay more to them than companies may have initially budgeted when the employer joined the scheme, say, 40 years ago.</p><p>The second issue is record low interest rates, which mean pension schemes aren't getting the returns they had hoped for.</p><p>The result is that "schemes and their employers have in recent years been 'running to stand still," Webb says. "Because interest rates have continued to fall and longevity has continued to improve, underlying deficits have tended to deteriorate. So even an employer who agreed a recovery plan and sticks to it can find that at the next three-yearly revaluation the deficit has gone up rather than down."</p><p>In other words, you're bailing out water but it's streaming into the bottom of the boat faster than you can work.</p><p>The problem is reminiscent of the <a href="http://www.bbc.co.uk/news/business-20262282">many "zombie" companies that sprung up in the wake of the financial crisis</a>, making just enough to pay the interest on their debts but not enough to pay the actual capital on the loan.</p><p>Many pension schemes are failing to admit that record low interest rates are around for the foreseeable future. Rubenstein told MPs: "It's certainly my sense that there is a fair degree of hope about the future course of interest rates."</p><p>But Phillip Coggan, a columnist with The Economist, <a href="http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/work-and-pensions-committee/pension-protection-fund-and-the-pensions-regulator/written/33163.html">says in a separate written submission (again emphasis ours):</a></p><p style="padding-left: 30px;">Some might say that those low interest rates should be ignored because they are temporary, or simply a function of accounting. But the Bank of England's official rate has been at 0.25% for seven years, far longer than anyone would have envisaged in 2009. The Bank of Japan has had 15 years of low official rates and bond yields without any sign of a change. And this is NOT just a matter of accounting. <strong>The cost of pensions has objectively risen</strong> - as will be discovered by any company wants to offload its pension scheme via the buyout markets.</p><p>How do you fix the problem? Webb says: "There are no particularly palatable options and simply allowing the situation to drift on is an option - perhaps in the hope that a mixture of higher interest rates and higher inflation will ride to the rescue."</p><p>Other options including watering down commitments to scheme members - in other words cutting people's pensions - or letting those deemed to be "zombie" schemes to make more risky investments "akin to 'betting the fund on the 3.30 at Haydock'," Webb says.</p><p>The future for these pension schemes looks bleak.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/inventors-who-were-killed-by-their-inventions-2016-5">7 inventors who were killed by their own inventions</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VsMGYwMDE6fvg6irQt8i2KueCbxtIwrO" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'VsMGYwMDE6fvg6irQt8i2KueCbxtIwrO',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

BHS' &#163;300 million pension black hole is the tip of the iceberg - there are 100s of 'zombie' pension schemes out there

<img class="gwt-Image" src="/photo/26139602.cms" /><br /> The relationship between income and affordability for various income groups follows a nonlinear trend. Owning a house means investing a substantial amount of money – probably the single largest investment made by any person aspiring to purchase a house. It is obvious that many people may not have the means to buy a house and may have to look out for possible <keyword id="6357455" type="EVENT" weightage="40" keywordseo="Funding">funding</keyword> resources. Availing loans from banks or other financial institutions in the form of home loans or mortgages is one of the ways to fullfil your dream if you have a regular source of income.<br />
<br /> Earlier the gap between middle-class income and cost of houses was huge, which made buying a house near to impossible. But during the last decade, the gap between the income level and the housing cost has come down significantly and more people are now interested in acquiring properties. That’s why there is increasing demand for middle-income housing. Moreover, <keyword id="6371181" type="UNKNOWN" weightage="40" keywordseo="interest-rates">interest rates</keyword> have also come down significantly, compared to what they were a few years ago.<br />
<br />
<strong>1) Avoid incurring more debts that you can handle.</strong> Since a mortgage loan involves a huge sum and a longer repayment period, it is crucial to take your repayment obligation seriously. Always remember that your home – your most important property – is at stake. Avoid applying for other loans that can be an additional burden. Keep your credit card spending in check. Whenever possible, try to pay more for your mortgage. The sooner you can complete your payments, the better.<br />
<br />
<strong>2) Arrange a fixed <keyword id="37018" type="UNKNOWN" weightage="40" keywordseo="interest-rate">interest rate</keyword> on your <keyword id="6354730" type="UNKNOWN" weightage="40" keywordseo="Home-loan">home loan</keyword>.</strong> It is recommended to choose a home loan with a fixed interest rate. Although a fixed-rate loan may start out with a higher rate, compared to a variable-rate loan, you can be assured that your monthly payment won’t change, regardless of the increased prime rate in the market.<br />
<br />
<strong>3) Consider getting a debt consolidation loan.</strong> If you are managing two or more types of loans, consider consolidating your debts for easier repayment. Consolidating or ‘merging’ your debts into a single loan can significantly lower the interest rate you are paying.<br />
<br />
<strong>4) Consider refinancing your loan.</strong> If you are in <keyword id="1009187" type="UNKNOWN" weightage="40" keywordseo="the-middle">the middle</keyword> of repayment, consider refinancing your current mortgage to lower your rate. Refinancing a loan is recommended, especially if you notice a considerable improvement in your credit score.<br />
<br />
<strong>5) Make a lump sum payment.</strong> If your finances allow you to pay your mortgage completely, do so. This way, you can be secure about your investment.<br />
<br />
<strong>6) Put in a large payment on your loan whenever possible.</strong> Instead of paying just the minimum due, try to pay more of your mortgage to cut down your balance more quickly.<br />
<br />
<strong>7) Don’t go for a loan just because it offers a very low rate.</strong> Do not sign up for a home loan just because it is offering a low interest rate. Keep in mind that a variable-rate loan is bound to change at any time during your repayment term. Half-way through your loan term, you may find that you are stuck with balloon payments, which can make repayment very difficult.<br />
<br />
<strong>8) Obtain a loan that gives you more options and flexibility.</strong> Look for a mortgage lender that offers flexible repayment options. Make sure that modification of your loan’s term is possible just in case anything unexpected takes place (for example, <keyword id="6358907" type="ORGANIZATION" weightage="40" keywordseo="unemployment">unemployment</keyword> or sickness).<br />
<br />
<strong>9) Go for a long-term mortgage.</strong> A home loan with a fixed interest rate and a reasonable repayment period will be less of a burden than a short-term loan with variable interest.<br />
<br />
<strong>10) Save for down payment.</strong> Submitting a higher down payment can reduce your loan interest rate by 20-25%. Therefore, prepare your down payment prior to acquiring a mortgage loan.<br />
<br />
<strong>11) List of savings/investments.</strong> Make a list of all the loans and savings/investments that you have made. Do you find instances where the savings/investments are giving lesser returns than the loan rates? This can typically be seen in endowment <keyword id="35450" type="COMPANY" weightage="40" keywordseo="insurance">insurance</keyword> plan, EPF and PPF, postal deposit and even ULIP. Why should you <keyword id="47916" type="UNKNOWN" weightage="40" keywordseo="invest">invest</keyword> in something when you are paying higher interest to somebody else? It is better to close all or most of these lesser returns savings/investments and divert the funds to close the home loan.<br />
<br />
<strong>12) There are ways to come out of the EMIs and make your loan tenure shorter. These include:</strong><br />
1. Partial pre-payment<br />
2. Switching to a lower rate<br /> 3. Increasing the <keyword id="6357050" type="COMPANY" weightage="40" keywordseo="EMI">EMI</keyword><br />
<br />
Now let us look at these options in more detail. The best part is – these options do not, in any way, add to your existing budget.<br />
<br />
13) <strong>Partial pre-payment.</strong> This is the easiest way to close a housing loan faster. The method is to make use of any one-time income such as bonus, salary arrears, gifts from friends/relatives, any windfall from the <keyword id="6357040" type="UNKNOWN" weightage="40" keywordseo="Share-Market">share market</keyword>, money from a property sold, deposits closed, tax-saving <keyword id="6362476" type="ORGANIZATION" weightage="40" keywordseo="investments">investments</keyword> maturing, closure of <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> that are giving you lesser returns than the housing loan, etc., to partially close the housing loan.<br />
<br />
These one-time payments help reduce the principal balance in the loan. And when the EMIs continue, they have to cover less principal.<br />
<br />
So the same EMIs require less time to close the loan. The earlier and more frequently these partial pre-payments happen, the faster you can close the loans.<br />
<br />
The author Brijesh Parnami is the CEO, Distribution at Destimoney.



13 Ways To Manage Your Housing
Finances Better<b></b>

Britain had a vast, unfair transfer of &#163;36 billion in wealth and no one is talking about it

<img class="gwt-Image" src="/photo/33767916.cms" />Won’t you feel cheated if your financial adviser gives you incorrect information or makes you <keyword id="47916" type="UNKNOWN" weightage="40" keywordseo="invest">invest</keyword> in an avenue that gives sub-optimal returns? But what about all those financial lies that we tell ourselves? Many of us are guilty of harbouring grave misconceptions about money matters.<br />
<br />
Some of these myths are borne of sheer ignorance and laziness; others are a legacy of the past. We follow these ideas with utmost conviction, without exploring the basis of these attitudes. How many of you believe, for instance, that buying term insurance is a waste of money? Or that planning for your retirement and drawing up a will are better left for later years?<br />
<br />
These are just some of the lies we are guilty of telling ourselves. Your mind tricks yourself into thinking that you are making the right financial decisions. Some people may even be fully aware of the lies that they tell themselves, but refuse to make any changes, as it would require them to step out of their comfort zone.<br />
<br /> Our cover story this week looks at eight such financial lies we tell ourselves all the time. It’s high time we stopped doing so because <keyword id="6362476" type="ORGANIZATION" weightage="40" keywordseo="investments">investments</keyword> based on these misconceptions can hurt your financial wellbeing. Find out which of these lies you have been telling yourself.<br />
<br />
<strong>“I don’t have to save for retirement so soon” </strong><br />
<br />
<em>Missing the initial years can rob your corpus of the magic of compounding.</em><br />
<br />
A NEW car, the latest smartphone, foreign holiday… when young people start earning, saving for retirement is not among the options they tick. Why just the young set, even those who are well-settled in their careers believe that retirement planning can wait. They argue that they will be able to save enough later when they start earning more. But delaying the start can prove costly.<br />
<br />
The longer you stave off saving for your golden years, the harder it will be for you at the end. As the graphic shows, if you delay retirement planning by 10 years, even a higher monthly saving will yield a smaller corpus than if you started early at 30. The delay denies the retirement corpus the magic of compounding. What you save in the first few years of your career makes up a huge chunk of your retirement corpus.<br />
<br />
One reason people don’t take retirement planning seriously is that they are still living in the past. They believe that their children will take care of them when they are older. But society is fast changing. In metros, joint families have already become exceptions rather than the norm they were some two decades ago. Also, relocating to another city for work is common now. So, don’t lean too much on that hope.<br />
<br />
A common fallacy is that “things will work themselves out in the end”. If you are also among those who believe that you will cross the bridge when you get there, it’s time to change the mindset. Start saving for your retirement now if you don’t want to spend your sunset years in penury.<br />
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<strong>“My expenses will come down after I retire”</strong><br />
<br />
<em>Many expenses come down, but healthcare and medical insurance costs shoot up.</em><br />
<br />
FOR A lot of people, retirement means a life far simpler than that they led during their working years. It is also perceived to be easier on the pocket, as living expenses go down, children become self-sufficient and most loans are repaid.<br />
<br />
But many other expenses start creeping up. While transportation, fuel and household expenses surely come down when one stops working, medical expenses shoot up as one grows older. Your healthcare costs are probably negligible in the early stages of your life, but once you hit 50, these will make a sizeable chunk of your expenses. According to estimates, almost 70-80% of the total medical expenses incurred by an individual during a lifetime happen after 70.<br />
<br />
India’s healthcare costs may be among the lowest in the world, but they are rising at a fast pace. Experts say that healthcare inflation is rising at 15-18% each year, nearly double the pace of consumer price inflation. At this rate, even regular surgeries like angiography, cataract, appendectomy, etc, will become more and more costly as you age.<br />
<br />
The cost of health insurance cover will also see a rise in the coming years. The premium for a Rs 3 lakh health cover is just Rs 2,500 a year when you are 30, but for someone above 65, it is Rs 18,000 a year. Given this scenario, it would be wise to factor in these expenses in your retirement planning and target a higher sum.<br />
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<strong>“My employer health cover is enough”</strong><br />
<br />
<em>Group plans are useful, but not enough because of the terms and conditions.</em><br />
<br />
DO YOU have medical insurance? Most people in the organised sector are covered by group medical insurance from their employers. While such covers are definitely useful, they may not be enough. Group plans have too many strings attached and offer very low cover due to sub-limits on various heads. A person who depends only on his group medical cover is never fully covered. Besides, the cover is valid only till you are with a company. If you are between jobs, you and your family may not have any cover during the intervening period.<br />
<br />
The group health cover may also become invalid if the company fails to pay the premium or if the insurer pulls out of the contract. In both situations, the employee has little say in the matter. Moreover, not all employer-provided health policies offer protection to the entire family. If you have dependent parents, you will need to buy a separate health cover for them. In recent years, many companies have cut costs on health care by reducing the coverage or introducing restrictions.<br />
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<strong>“I can pick winning <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword>, so why should I buy a fund?”</strong><br />
<br />
<em>Individuals will not be able to beat a fund manager in the long run.</em><br />
<br />
WHEN MARKETS are on an upswing, as they are right now, everybody becomes an expert. Even newbies start behaving like stock analysts, and why not? The stock market has the potential to deliver huge returns and, therefore, many newbie investors try their hand at stock picking. Many also end up burning their fingers, but that doesn’t stop them from trying again.<br />
<br />
If they manage to earn good returns in the first instance, it is enough to convince them that they have the required expertise. It encourages them to hunt for more such stocks. However, the stock market often proves to be a great leveller and small investors usually end up with losses. There is no harm in trying your hand at this game, but do so in a cautious manner. Do not get carried away by a few good stock picks. It might be due to pure dumb luck. Mutual funds provide a much more convenient route to investing in equities.<br />
<br />
Though there is no guarantee that a mutual fund will not lose money, its diversified portfolio and the expertise of professional managers will ensure your investment does not fall off the cliff. Yet, small investors continue to buy stocks directly because it makes them feel as if they are in control. As one expert has said, if your direct investments in stocks are able to beat the returns of a mutual fund over the long term, you are in the wrong profession.<br />
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<br />
<strong>“Pure term insurance is a waste of money”</strong><br />
<br />
<em>It is more cost-effective than a policy with a maturity value.</em><br />
<br />
WHEN WE make a payment, we are not satisfied unless we get something in return. This is why it is difficult to convince people to buy a pure term insurance. In a term plan, the entire premium goes into buying the life cover and you don’t get anything back. Agents use this feature to brand term plans as a terrible waste. Instead, endowment policies and money-back plans are more popular among people, purely because they have a maturity benefit and offer something at the end of the term.<br />
<br />
However, by seeking a return on your investment instead of pro- tection for your family, you are wavering from the very premise of life insurance. Pure term insurance plan is the simplest, unadulterated form of insurance. If the policyholder dies, it pays out the sum assured to his dependants and helps secure their financial well-being. Other forms of life insurance are savingscum-insurance products, which give very low cover and charge huge premiums. As the table shows, a term plan and PPF combo works better than an endowment plan.<br />
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<br />
<strong>“Bank fixed deposits are the only safe investment”</strong><br />
<br />
<em>Other options are just as safe and offer much higher returns.</em><br />
<br />
BANK FIXED deposits are considered the safest investment because they offer guaranteed returns. While this is true, the obsession with bank fixed deposits is not warranted.<br />
<br />
First, these are not completely safe. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits of up to Rs 1 lakh per customer across all branches of a bank. This means that any deposit amount higher than Rs 1 lakh with a bank is at risk in the event of default by the bank. Secondly, a bank fixed deposit is not a taxefficient investment. Don’t underestimate the impact of tax on your returns. Interest from fixed deposits will be taxed at the normal rate applicable to you. For a person in the 30% tax slab, a fixed deposit fetching 9% interest would effectively yield only 6.3% after tax.<br />
<br />
Keep this in mind before deploying a chunk of your money in bank fixed deposits. There are now several alternatives to a fixed deposit, some of which may not be considered safe in the traditional sense, but are nevertheless lowrisk investments. Tax-free bonds issued by government undertakings, for instance, are at par with bank FDs on the safety scale. These offer the same rate of return, but the income is completely tax-free for the investor, making them a more tax-efficient investment.<br />
<br />
FMPs from mutual funds are another alternative. They offer roughly the same yield, although this is not guaranteed. However, these are also more tax-efficient as they offer the benefit of indexation, which reduces the tax to almost nil.<br />
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<strong>“It is better to buy a house than live on rent”</strong><br />
<br />
<em>High property prices and oversupply mean you can live on rent comfortably.</em><br />
<br />
A SURVEY of mutual fund investors shows that most of them plan to invest in property this year. Would that be a sensible investment? If you are shelling out a huge rent every month, you would probably say yes. Buying a home seems a better alternative to living on rent and getting bullied by the landlord every time your lease comes up for renewal. But consider these points before taking the plunge in the housing market.<br />
<br /> A study by Arthayantra shows that buying is not always a better option. For instance, the high property prices in Delhi make renting a better option than buying. A 1,000 sq ft property will cost you roughly Rs 1.1 crore in Delhi, while the rent for a similar property will be around Rs 25,000 (see graphic). In Mumbai, rents are high but property prices are higher. According to Arthyantra, even those with an income of up to Rs 25 lakh a year will find renting more affordable than paying the <keyword id="6354730" type="UNKNOWN" weightage="40" keywordseo="Home-loan">home loan</keyword> <keyword id="6357050" type="COMPANY" weightage="40" keywordseo="EMI">EMI</keyword>. Of course, in some cities, such as Kolkata and Ahmedabad, the high rents and relatively low property prices make outright purchase a better option.<br />
<br />
Before you buy, you must also consider your financial position. Where will you arrange the downpayment from? Will you be able to afford the EMI on the loan? Are you forsaking other financial goals to buy the house? After your monthly household expenditure, will you have enough savings for other financial goals? For someone in the middle income bracket and living in a metro, this is a highly unlikely possibility. It would be much cheaper to rent the house than to buy one, despite the high rentals.<br />
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<strong>“I have all the time to draw up my will”</strong><br />
<br />
<em>There is no saying what happens tomorrow. Draw up a will now.</em><br />
<br />
RETIREMENT PLANNING is not the only thing we tend to put off for later. People also give little importance to estate planning—the process by which an individual arranges the transfer of his assets to his legal heirs. Why don’t people take this seriously? For many, the task of writing a will is best left for the later years, something they can do after retirement.<br />
<br />
For others, a will is something only the super rich need to worry about. Both explanations are flawed. There is just no way to know when a person may die. That is why we have a multi-crore life insurance industry. If you have not taken the necessary steps beforehand, your loved ones will have to do a lot of running around to prove that they are the only legal heirs. They will have no access to any A SURVEY of mutual fund investors shows that most of them plan to invest in property this year.<br />
<br />
Would that be a sensible investment? If you are shelling out a huge rent every month, you would probably say yes. Buying a home seems a better alternative to living on rent and getting bullied by the landlord every time your lease comes up for renewal. But consider these points before taking the plunge in the housing market.<br />
<br />
A study by Arthayantra shows that buying is not always a better option. For instance, the high property prices in Delhi make renting a better option than buying. A 1,000 sq ft property will cost you roughly Rs 1.1 crore in Delhi, while the rent for a similar property will be around Rs 25,000 (see of the assets that you have meticulously built up for them over the years. It is wrong to assume that your estate will automatically pass to your spouse and children, because sometimes other relatives can also stake claim to your assets.<br />
<br />
Simply naming a nominee in your investments will not suffice. Having a will ensures that your assets are distributed to your loved ones in the way you desire. In fact, you should make a will as soon as you start building assets. It can then be revised at any point to reflect any further additions to your estate, as well as modifying the distribution of assets among the heirs. Just remember that if you die without making a will, it will cause a lot of inconvenience to your loved ones. Do not put it off for tomorrow.<br />
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You Searched For "PPF changes" and got 12 results

New tax structure gives option to save tax: Revenue Secy

PTI

The Bank of England is to blame for the BHS pension crisis

Oscar Williams-Grut

97% people above 18 years have a savings account; only 3% invest in realty: Survey

BI India Bureau

RBC analyst is upbeat about an increase in the death of pensioners

Jim Edwards

The top plan to tackle Britain's pension crisis would costs retirees £20,000 each - and still wouldn't solve things

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Economic Times

Pensions watchdog warns another BHS-style disaster could happen unless MPs act

Oscar Williams-Grut

Union Budget 2014: 25 Key Points

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BHS' £300 million pension black hole is the tip of the iceberg - there are 100s of 'zombie' pension schemes out there

Oscar Williams-Grut

13 Ways To Manage Your Housing Finances Better

Brijesh Parnami

Britain had a vast, unfair transfer of £36 billion in wealth and no one is talking about it

Jim Edwards

Busting Common Investor Myths On Money Matters

Economic Times

You Searched For "PPF changes" and got 12 results

New tax structure gives option to save tax: Revenue Secy

PTI

The Bank of England is to blame for the BHS pension crisis

Oscar Williams-Grut

97% people above 18 years have a savings account; only 3% invest in realty: Survey

BI India Bureau

RBC analyst is upbeat about an increase in the death of pensioners

Jim Edwards

The top plan to tackle Britain's pension crisis would costs retirees &#163;20,000 each - and still wouldn't solve things

Oscar Williams-Grut

10 best tax-saving investments

Economic Times

Pensions watchdog warns another BHS-style disaster could happen unless MPs act

Oscar Williams-Grut

Union Budget 2014: 25 Key Points

Manish Kumar

BHS' &#163;300 million pension black hole is the tip of the iceberg - there are 100s of 'zombie' pension schemes out there

Oscar Williams-Grut

13 Ways To Manage Your Housing Finances Better

Brijesh Parnami

Britain had a vast, unfair transfer of &#163;36 billion in wealth and no one is talking about it

Jim Edwards

Busting Common Investor Myths On Money Matters

Economic Times

The top plan to tackle Britain's pension crisis would costs retirees £20,000 each - and still wouldn't solve things

BHS' £300 million pension black hole is the tip of the iceberg - there are 100s of 'zombie' pension schemes out there

Britain had a vast, unfair transfer of £36 billion in wealth and no one is talking about it