TRUSTEES may ask their sponsoring companies for as much as £45bn a year for the next five years to compensate for shortfalls in private pension schemes, according to Aon Consulting.
The funding shortage for the 200 largest privately sponsored pension schemes fell by £9bn to a total deficit of £15bn at the end of October.
The Aon200 Index, which tracks the 200 largest privately sponsored pension schemes, shows that 64% of sche
mes are now in deficit. Total asset losses over the past year have now hit £226bn for the UK's 8,000 final salary schemes.
Aon also reported that in defined contribution pensions, where employees bear the risk, pension scheme assets have lost £157bn in the past year; a total pension asset loss of £383bn. Around two-thirds of employees' pension benefits are provided by defined benefit schemes.
Life policy cutsSTANDARD Life is cutting final bonus payouts for around two million customers. The company is also establishing tighter penalties for policyholders who cash in their pensions and investments early.
Final bonuses for customers with a regular premium pension will be cut by between 8% and 14%, while payouts for mortgage endowment customers could fall by 11% to 13%.
Standard Life plans to introduce market value reductions to more with-profits plans and also raise existing ones, in some cases by up to 30%.
The company blamed the moves on heavy falls in the stock market. The firm's savings and investment sales fell by 29% between July and September.
Web comparisonsUSWITCH.com has launched two new comparison channels for savings and travel insurance.
The savings channel will allow consumers to search and compare over 1,000 accounts, ranging from cash Isas to children's savings accounts.
On the new travel insurance channel consumers will be able to compare and buy from a range of policies including annual and single-trip insurance and wedding cover.
USwitch.com has joined with Drakefield, part of the AA/Saga Group, to provide the travel service.
Abbey card launchABBEY has launched a new credit card offering 3% cashback on essential purchases for the first six months.
Consumers can receive up to £75 cashback if they use the card, which aims to help consumers deal with spiralling living costs and buy 'essentials' such as petrol and groceries.
The card also offers 0% on balance transfers for nine months and 0% on purchases for three months from an account opening.
Wages insuranceMILLIONS of workers are wasting £570 a year on unnecessary Payment Protection Insurance, according to the Post Office.
The latest protection study from the Post Office revealed that one in five full-time workers have more than one PPI policy when a single product could cover all major household bills.
The Office of Fair Trading has been investigating the mis-selling of PPI policies. Consumers are advised to shop around for a standalone product which fulfils all their requirements.
However, the Post Office reminds consumers that they shouldn't get rid of their protection all together, especially with increasing unemployment fears.
Fireworks falloutWITH nearly three million households throughout the UK planning fireworks parties, insurers are warning householders to check they are covered to host one under the personal liability section.
Personal liability claims happen when an individual behaves negligently and can be very costly, according to Esure. It recommends people stick to public displays, or if you do have celebrations at home, follow safety precautions, position bonfires well away from fences, trees and people, and avoid alcohol while in charge of fireworks or bonfires.
Finally, Bonfire Night is the worst day of the year for burglaries and car theft, which both increase by around a quarter, according to Norwich Union.
The number of malicious damage claims to property doubles and claims for malicious damage to cars increase by 50%.
Unsurprisingly, Bonfire Night is also one of the worst nights for fire claims, with 50% more than usual.
The full article contains 663 words and appears in Scotland On Sunday newspaper.
