Three Million Savers With ‘Final Salary’ Pensions Have 50% Chance of Losing up to a Fifth of Their Income

New pension scheme rules challengedThree million workers with final salary pensions have a 50 per cent chance of losing up to fifth of their income because their employers have made unaffordable promises, a recent report has warned. Could you be one of them?
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Sterling Plunges as Bank of England Cuts Interest Rates For First Time Since 2009, Pension Funding Gap Widens

BoE cuts interest ratesThe Bank of England has unveiled a fourpronged stimulus package designed to boost the economy and prevent a recession following the vote to leave the European Union.

Sterling tumbled and UK gilt yields dropped to fresh lows after the Bank surprised markets by restarting its money printing programme to buy government and corporate debt alongside the first interest rate cut in seven years.

Subsequently, the deficit of defined benefit or “final salary” pensions, which pay out an income linked to an employee’s final salary, jumped GBP70billion as a direct consequence of the decision to reduce interest rates by 0.25%.

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