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British pensions: final salary scheme alert, are you informed of your position?

british-mgRecently my colleague at Spectrum, Gareth Horsfall, wrote about the concerning situation affecting many British final-salary schemes and their members.

You may be one expat with such a scheme. Rather than reproduce here all the relevant facts, you can read his article here and get up to speed with the challenges facing final salary schemes in the UK and what you need to consider now, if you have one.

Unfortunately many of these schemes, and some are now suggesting, the majority of these schemes, are likely to be unfunded.

A UK pension-Final salary scheme aims to provide a guaranteed pension benefit to its members. The benefit is calculated based upon your actual salary in your final years of employment. These schemes are not linked to actual sharemarket performance and have been closed to new members for years.

The concerns Gareth wrote about can be read about further in online news articles such as the Royal Mail final salary pension, the British Steel pension fund negotiations to reduce pension benefits of its 130,000 members as reported in The Financial Times, and previously the Express wrote about a crisis for the final-salary schemes of major FTSE-250 companies, here.

If you need more information about your own scheme, or to understand your options in any case, regarding final-salary schemes, please contact the author.

NB: Please note this information is general and does not represent personal financial advice. Such advice can only be provided after your full financial situation is taken into account by a qualified financial adviser.

photo credit: jeremyg3030 MG TD via photopin (license)

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