Two-Thirds Of UK Pension Funds Are In The Red - $300 Billion Shortfall Revealed

Sir Steve Webb, a former pensions minister under the recent coalition government, said Carillion would not be the last big company to fold leaving its pension scheme in jeopardy.

“The question isn’t if there will be another Carillion – it’s when,” said Webb, who is now director of policy at pensions group Royal London.

His ominous warning appears prophetic as, according to the Pension Protection Fund (PPF) watchdog, some 3,710 schemes are in deficit, putting a serious question mark over the retirement plans of millions of workers.

The PPF monitors the health of 5,588 pension pots, with some of the biggest names on the FTSE 100 running schemes with major shortfalls.

That means two out of three pension funds are in the red – to the tune of a combined £210 billion ($300 billion).

As Yahoo reports,  the PPF has been called into action on two high profile occasions of late – working with Toys R Us to secure a near £10m injection into its ailing fund to protect the company’s short-term future and also sorting through the debris of the Carillion collapse.

The giant contractor folded earlier this month with debts of above £1.3bn, including an estimated £800m hole in its pension fund.

The Carillion collapse affects about 27,500 members of its various pension schemes, the latest in a long line of funds to face an uncertain future. As Webb warns:

With two-thirds of schemes in deficit it is inevitable there will be more insolvencies and more schemes ending up in the PPF.

The PFF typically pays members 90% of what their nest eggs were worth in the event it has to intervene to safeguard a scheme.

A report from consultants PwC last October estimated the total deficit of all the defined benefit (DB) pension funds in the UK stood at £410bn.

Comments

Haus-Targaryen Déjà view Thu, 02/01/2018 - 04:37 Permalink

Hope every single boomer on ZH has the intellectual wherewithal to acknowledge that pension you've been promised and paid into the past 40 years ... its long gone, you likely will see little to any of it. 

Accept this now and when that time eventually comes, you'll be miles ahead of those figuring it out the hard way and for the first time.  

However, maybe the Left could try importing some 15 million savages into Europe to fix the demographic problem THEY created via third-wave feminism and their focus on destroying the Western-White nuclear family with 2.3 kids and a dog, which is of course necessary to support the ever expanding social-welfare-ponzi state THEY IN FACT created.

God, the Day of the Rope cannot come fast enough.  Fuck the contemporary social-justice Left.

Thanks Yuri for the warning some 33 years ago ... 

https://www.youtube.com/watch?v=0wakec06NlA&t=259s

In reply to by Déjà view

fleur de lis COSMOS Thu, 02/01/2018 - 06:24 Permalink

Yep -- importing angry migrants who refuse to work, then soak up welfare checks and social costs adds to the bill.

They demand cultural preferences and then clog the courts if they don't get they own way.

They despise their caregivers and feeders who provide for them in every way.

Then all the costs are passed on to the taxpayer with nothing in return.

The Brits have created a dysculture for themselves.

There is no good reason to keep doing this to themselves yet they keep doing it.

 

In reply to by COSMOS

Haus-Targaryen JohnGaltUk Thu, 02/01/2018 - 05:25 Permalink

When we enter the "crisis" Yuri spoke of, the government will steal literally everything you do not directly possess (and maybe even some you do) to keep itself in power.  It will open up secret prisons (oh wait, we're already there), it will do unspeakable horrible things to retain its power.  

When the USSR imploded, high-ranking Soviet officials gave the world a gift; they abdicated without starting WWIII to potentially preserve their power.  I don't believe well be so lucky this time. 

 

In reply to by JohnGaltUk

JohnGaltUk Haus-Targaryen Thu, 02/01/2018 - 05:53 Permalink

I totally agree. I have always thought that. People always mistakenly believe that humans always move forwards in a linear direction but that is not always true.

Rome was a very advanced culture and yet when in collapsed and the similarity are really remarkable, we went into the dark ages until the enlightenment. We can not let them divide and conquer.

I can not make up my mind about what they are doing here in Europe. Are they using immigration for more tax drones for the unfunded pensions or is it for division between the people to keep us occupied while the collapse is going on.

One thing I have noticed and it is very clear. The folks that protested Trump are the same that protested BREXIT. Everyone being labeled as racists, same in Canada too. Their tactic are exactly the same and someone has to be financing them.

In reply to by Haus-Targaryen

Haus-Targaryen JohnGaltUk Thu, 02/01/2018 - 06:58 Permalink

When I think and reflect on Yuri's various speeches over the years (specifically in 83 and 85) my theory on why we are where we are is as follows: 

The United States and its NATO allies sought to destroy the USSR's economy as a means to winning the Cold War without a nuclear exchange. 

The USSR sought to destroy the United States and NATO's various societies and cultures via ideological subversion as a means to winning the Cold War without a nuclear exchange. 

Both groups were successful in their goals -- the US and NATO destroyed the USSR's economy and the USSR destroyed the US and various other NATO member's cultures and societies via ideological subversion.

The Soviet economy collapsed before the US' culture and society did, thus wiping out many/most of the KGB's functions both internally and abroad. Once the United States and her allies won the Cold War, those that were ideologically subverted were already in power, both in politics, the media, education, etc., etc., and continued on as they had, but now without some form of control and support from Moscow. 

Thus, Russia and the FSB (successors to the USSR and KGB, respectively) could never/never wanted/needed to move various Western Societies from Destabilisation (Step 2) to Crisis (Step 3).  Ergo, we as a Western Society have been in Step 1: Demoralisation and Step 2: Destabilisation since the Cold War ended -- we will bring about the Crisis ourselves, what happens in Step 4: Normalisation is anyone's guess. 

This Social Justice movement and the intellectual gulag of PC are simply ideological subversion stuck in Step 2 without any form of control from external sources. 

Now if you want to put on your conspiracy/tin foil hat -- the USSR knew it would lose the Cold War first, and thus voluntarily brought about its end prematurely so as to allow the West its continued downward decline for a few decades ... giving its successor the ability to reform its economy into something more sustainable before it does, sometime in the future bring about Crisis and thereafter Normalisation.         

In reply to by JohnGaltUk

BullionBlast Haus-Targaryen Thu, 02/01/2018 - 19:37 Permalink

When the USSR imploded, high-ranking Soviet officials gave the world a gift; they abdicated without starting WW III to potentially preserve their power.

I believe those 'high ranking Soviet officials' remembered what happened to their Stasi secret police friends in East Germany. Think pitchforks and clubs.....and rakes, axes and Grandpa's old sword.

The American Deep State is so full of hubris that they think they will skate.  They probably think the military and 800 FEMA camps will protect them. History proves otherwise.

In reply to by Haus-Targaryen

U4 eee aaa Haus-Targaryen Thu, 02/01/2018 - 07:01 Permalink

I'm almost glad that by the time I came into the workforce silent generation and boomer run companies were too cheap and greedy to give us a pension. So now I am not dependent on that for my retirement. I may not have much but at least I had nothing to sucker me into paying for a scheme that was just a fraud designed to keep me quiet while the 1% crooks gutted the company in the form of stock options

In reply to by Haus-Targaryen

GreatUncle Haus-Targaryen Thu, 02/01/2018 - 07:15 Permalink

@Haus

Revenge is going to be oh-so-sweet on those who awarded themselves golden pensions taken from taxes to protect themselves whilst millions are going to get little to nothing and the poverty.

The reason this has ballooned is ZIRP by the CB's and the forced inflation to support sovereign debt but we all now know the central planners are wholly responsible for the populations future suffering :-) JUSTIFIED REVENGE

Over the last decade their policies is what has destroyed pension pots, even more amusing the population is still being forced to keep paying in through money being taken direct from peoples wages, but nobody is telling them the money is gone.

 

In reply to by Haus-Targaryen

HRH of Aquitaine 2.0 Haus-Targaryen Thu, 02/01/2018 - 07:23 Permalink

No pension but I do have nearly 100 pounds of physical silver. Enough? No idea. I can cook, sew, tat, crochet, grow herbs and greens, along with knowing how to shoot and reload. I can green train a young horse to the point of accepting a bit and bridle and saddle. Is it enough? Probably not. But I am going to do what it takes to survive.

Winners never quit.

In reply to by Haus-Targaryen

Endgame Napoleon Haus-Targaryen Thu, 02/01/2018 - 09:32 Permalink

The first wave of feminism was a force for good; it advanced individual freedom in a rational and justified way. Women could not even vote at that point. They were not full citizens.

The second wave of feminism—the liberal wave—was bad enough, carelessly upending many age-old traditions that were there for very good reasons. It had many negative effects.

Third-wave feminism—the progressive wave or the nutty wave—takes a large slice of blame for many things, including our $116-billion-per-year welfare drain to accommodate illegal immigration, here in America.

Second and third-wave feminism: neither was needed to ensure that the minority of ultra-career-women, the few with major intellect or truly stand-out skills, could pursue careers in fields where they excel, with no need for a chorus of cheering feminists to prove the worth of their work output.

Everything in life has a trade-off, even for men in all generations. 

In past eras, the truly exceptional women just needed to make a few sacrifices to have careers. Take Francis Perkins, the woman who designed the Social Security system, which many on ZH call a Ponzi.

The goal of Fake Womb-Based Third Wave Feminists is to make sure that “work”ing moms never have make a sacrifice when they take on the responsibility of raising kids. 

This fake, progressive-style feminism has the unintended consequence of destroying the lives of many women who do not have the unearned income that comes with having children—the spousal income, the child support check that covers rent or the free rent, the free groceries, the cash assistance and the $6,444 child tax credit that boosts up the pay of single moms. These are the women with earned-only income who have to work, not because they are among the top echelon of career women. This group was much better off in the pre-second-wave feminism era, with far fewer job chasers with unearned income that makes it easy to accept rock-bottom pay, diluting wages and dominating jobs in gangs of back-watching culture-fit moms.

I have talked to elderly women in this category who had to work in ordinary jobs in the Thirties and Forties—in the days when most moms raised their own children, rather than taking a job that someone with no womb-based, unearned income needed—and they told me that it was great. The sexism that women complain about is largely a myth after the first wave of feminism. 

Whereas, most female-dominated workplaces in the Third Wave Feminist Era are extremely discriminatory—advertised as “voted best for working moms,” with interviews revolving around how “you just don’t know what it is like to raise two boys,” staffed and managed by near-100% frequently absentee, back-watching bully-mom gangs. Unprofessional-to-the-max “work” days revolve around 1) loads of excused absenteeism for moms and 2) mom-bonding rituals, like baby-mommy-look-alike-bulletin-board-decorating contests. 

The vast majority of these jobs in large corporate offices, along with all of the jobs in smaller offices, do not even pay enough to cover rent that consumes more than half of the earned-only income of the few childless, single employees. 

Truth is that most Americans do not have pensions of any kind or even enough pay to cover basics unless they have spousal income or are on the pay-per-out-of-wedlock-birth train. Pensions. What a joke.

The second wave of feminism has a lot to do with that. When women entered the workforce en mass, along with millions of legal / illegal immigrants, it diluted the wage pool, the value of labor and job quality, flooding the workforce with a ton of people who could afford to work for less pay and fewer-to-no benefits due to a spousal income, a child support check that covers their rent or ever-growing layers of monthly welfare and child-tax-credit welfare to reward sex and reproduction outside of marriage.

Wages have stagnated and declined for 40 years for most Americans as a result, ruining many lives and many futures. 

Since most workers lack employer-based pensions or even long-term employment, there is no pension to lose for most. However, it is going to undermine Western institutions even more when all of these Westerners who, essentially, had a legal contract guaranteeing a pension in countries premised on the rule of law find out that it was just an illusion.

I doubt that arrogant and hypocritical elites, with their trust-fund-bolstered kids and their 50 layers of asset protection, are going to be able to lull the masses into stoicism about this matter, when the pensions tumble and, especially, when the SS program that soaked up either 7.65% or 15.3% of every paltry dime earned by the overwhelming majority of underpaid Americans starts to come unhinged. 

We already have a major undermining of the rule of law, as the left has created a new category of humans who are above the law due to race and due to the fact that they reproduced after illegal border crossings. Funny, mass, welfare-buttressed immigration—the left’s solution to fix employer-based and government pensions—is even more irrational when automation is factored in.

Automation is swatting third-wave feminism like an annoying fly. Automation does not care one bit about their theories of women’s rights or, more precisely, the increased privileges owed to working moms. 

It is not just them. Human labor, in general, is already much less valuable and will be less valuable across broad categories, making the importation of so many more mouthes to feed the height of irresponsibility, especially when the West pays the immigrants (and many citizens) per birth with welfare to cover rent and food and heaping child tax credits that maxed out at $6,444 in the USA until doubled in a recent “tax cut.”

Elites are paying them to produce a maximum number of kids to chase future jobs, as automation continues to reduce work hours and the need for human labor. It is sheer insanity, designed by people who really should not be called “elite,” no matter what their teachers said about some paper they wrote.

Smart people would not ignore the obvious in such a grave matter, and the reason these people are ignoring it does not indicate superior intellect, but just irrationality.

It is just transparent selfishness, vanity and bigly greed. The dual-high-earner-couple class is living a life of excused, lengthy and frequent babyvacations every few months, while retaining jobs that enable them to be on a vacation so frequently due to computers that do more of their work.

They live lavishly, with homes that exceed what only the top echelon of the business class had in past eras—i.e. the employers of many people. Every kid is in a $30k private school, and the number of vacations that “hard”working parents get away with taking, while maintaining their high-paying jobs, is just mind-boggling.

But it is the same at the bottom of the wage pool, where low-wage mom workers take off the same astounding amount of time, getting away with it, and they are favored by employers because they can accept low pay due to their spousal income or their pay-per-birth freebies from government. 

At the top and the bottom, this is only possible because of advanced software, doing more and more of their work.

We do not need more workers.

We need the parents to take a greater interest in raising their own kids in an excellent way, like past generations. 

Take the 300% rise in mass shootings in the USA, many of which were carried out by school-aged kids. 

We need moms to spend more time raising their own kids, rather than pretending to work, occupying a job while taking off every day at 2:30, heedless of phones ringing off the hook with paying customers, and for mornings, afternoons and weeks beyond PTO and pregnancy leave(s).

We also need for male wages to rise to make the one-earner households of yore economically feasible again, and that will not happen with the flood of illegal immigrants, getting welfare and child tax credits because of US-born kids and a sole, male breadwinner’s traceable income that falls below the earned-income limit for the programs. 

So, what did the Swamp leaders in the corrupt US Congress do? They doubled the child tax credit, just before unleashing another mass amnesty plan.

When women started letting $9-per-hour daycare attendants, NannyCams and / or elderly grandparents raise their kids, someone forgot to teach rational thinking skills, right along with the virtue of humility and limits on greed and selfishness. 

In reply to by Haus-Targaryen

northern vigor Haus-Targaryen Thu, 02/01/2018 - 09:32 Permalink

Not every "Boomer on ZH" paid into those pensions.
I was told in the early 1980s...everyone was, that there wouldn't be any pensions by 2025, the year I turn 65.
I made my own pension plan. I am a little worried about health care though. With 100 million boomers demanding services, and millions of Muslims in the maternity wards... I can see Mrs Vigor and I in the back of the line one day waving our check book but no one looking at us. I just presume there won't be any health care for anyone over 70, just the proverbial ice flow. 

In reply to by Haus-Targaryen

JohnGaltUk BigCumulusClouds Thu, 02/01/2018 - 04:37 Permalink

This is way under estimated, I read a report back in 2015 where the estimate was more like 600 to 800 billion.

If we have a wave of sovereign defaults you will see lots of old people working at McD's

The end baby boomers will be lucky to get any government pension too because it has never been funded hence Europe is importing all that human garbage from the middle east and Africa hoping to turn them into tax drones to pay pension promises. Folks will get a little angry if they dont get a pension that they have been paying tax for all their life. Politicians are likely to get Jo Cox'd by an angry mob.

You want to take a look at what they are doing in Spain. To help stay with in EU budgetary rules concerning deficits the state has been helping themselves to the Spanish peoples pension fund which is meant to be segregated.

Oh boy I can not wait when the average EU citizen wakes up to what is really going on.

Get ready to rumble. 

In reply to by BigCumulusClouds

BigJim JohnGaltUk Thu, 02/01/2018 - 08:39 Permalink

Unless some flu comes along that kills everyone over 67, then governments will continue to pay basic state pensions because old people vote. They'll probably have to print money to do so, of course, so the State debt burden of pension obligations is probably one of the key reasons to buy gold (or crypto, if that's your thing).

Amazing how slowly this giant train wreck is proceeding, though.

In reply to by JohnGaltUk

MrSteve COSMOS Thu, 02/01/2018 - 11:09 Permalink

Check out Homer’s History of Interest Rates, the livestock loan rates would indicate the value of the collateral in Ancient Rome. I know the foot soldiers were paid one silver denarius per day with one additional denarius for expenses, food and shelter. A denarius is one silver dime nowadays.

In reply to by COSMOS

Ace006 Thu, 02/01/2018 - 04:41 Permalink

But, but . . . I thought importing millions of foreigners and forcing them to finance the retirement of native Britons would solve the pension problem!  The government thought screwing foreigners was a terrific idea but, whoa, it was the ungrateful foreigners who screwed Britain

And the Labour Party was who really got the importation process going in earnest. They looked after the interest of the British working class in a big way. The workers must be grateful now. They're just waiting for an opportunity to show it.

WTFUD scallywagrab Thu, 02/01/2018 - 05:57 Permalink

Tony took the 'Pieces of Silver' on Offer then joined the Catholic Church to receive the Pope's blessings & forgiveness for his many Sins. He's now a Wealthy Man, sitting on Board of many of these Pension Ponzi Funds.

A man who can consume deep within, zero Responsibility or troubled conscience, for the Genocide of Nations , will have little trouble Aiding & Abetting the MONEY-CHANGERS. 

In reply to by scallywagrab

GreatUncle scallywagrab Thu, 02/01/2018 - 07:26 Permalink

But the Labour supporters without critical thinking skills blame everybody but themselves for voting for him.

On top of that they now think Corbyn can fix this! ... Well if he has not got a money tree his spending plans will just increase the pain and suffering on ordinary people.

So Labour supporters will turn out and vote Labour just like dumb sheep and get the same outcome that can already be predicted.

You can extend the whole above concept to any of the LIB-LAB-CON political parties because they are riding on a failed economy.

 

 

In reply to by scallywagrab

Ace006 scallywagrab Thu, 02/01/2018 - 12:02 Permalink

I do indeed admit that though I don't think there was much diff between New and old Labour.  When politicians put "new" (or "fair") in front of anything it just amounts to an empty variation on the old extortion and betrayal.  Whatever "New Labour" was, hasn't it just lapsed back into plain old "the Labour Party"?

Blair was different, now that I think of it.  He opened up the spigots on immigration out of pure spite.  I don't think the present lot are that way on that issue though I don't believe they're the least bit interested in reducing or stopping the flow.

In reply to by scallywagrab

JohnGaltUk Ace006 Thu, 02/01/2018 - 05:43 Permalink

Hey Ace006,

There is a very big upside to this.

I believe that many European nations will default on their sovereign debt. Private pensions are stuffed to the rafters with sovereign bonds because by law all pension funds have to hold % of government bonds, well you know a piece of paper with a promise is as good as gold LOL. Coupled with the fact they will be unable to pay a state pension and then the NHS will collapse with many other government services and public sector pensions.

After the civil unrest and the buildings being burnt down and the violence and things settle down do you think that the citizens will ever trust the state again. Will citizens be in the mood to be taxed high to start another ponzi scheme? You can see the trend in Europe right now that people are moving to the right and they will reject socialism in any form. The GFC was a classic debt problem and instead of deleveraging they made money cheaper and the world has another 65 trillion of debt since the GFC. How will it end? Will it be like dominos or Jinga? Take your pick.

In reply to by Ace006