Nail in the Coffin for Final Salary Schemes

Today Unilever was the latest in a line of companies that has scrapped its final-salary pension scheme. With the recent announcement that UK civil servants will probably also lose their final-salary pensions, how people can protect their pensions is becoming a more and more vital issue.

London, UK (Pryce Warner International Group) April 14th, 2011 – Final Salary schemes have long been a reliable method for both the civil service and large companies to attract the best talent.

The prospect of retiring on your final salary is understandably very appealing and has undoubtedly led to a much larger migration of talent to companies that can afford to offer them.

However, the recent economic slump and the fact that companies have vastly underestimated how long people would live, has meant that sustaining such schemes is now impossible.

With Final Salary Pensions being replaced by the much less generous career average or defined options pensions, more and more people are trying to find ways to strengthen their Pensions.

For British Expats, the answer is Transferring Pension Assets to a QROPS or QNUPS. These pension schemes allow Expats to get much lower tax rates and also minimise Inheritance Tax whilst at the same time allowing the Pension Plan Holder to pass the assets remaining in the plan to their chosen beneficiaries.

Even relatively young Expats could benefit from a QROPS or QNUPS, the death of final-salary Pensions means that young people will need to start planning earlier to ensure their financial security during retirement.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International Group, a Respected Financial Services Group who are specialists in the provision of Pension Plan Management for Expatriates Worldwide commented: “The news that even highly successful companies such as Unilever are cancelling final salary pensions really is another death knell for the schemes as a whole. Fortunately for Expats there are a range of pension options available to them that can help make up the difference that would not be available if they were still living in the UK.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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