Property 'could help remedy pensions problem'

Money News

www.moneynews.co.uk > Pensions > Property 'could help remedy pensions problem'

Topics

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Features

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Companies

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Money News

bullet
bullet
bullet
bullet
bullet

Property 'could help remedy pensions problem'

It is a good idea for companies to utilise property as a contingent asset in pension funds, according to an independent pensions and investments expert.

Dr Ros Altman explained that the Pensions Regulator has encouraged firms to follow this strategy as an alternative to cash in order to make up the deficit in pension schemes.

Her comments were made after Sainsbury's announced that it will establish a property partnership to address £600 million of its pension deficit.

"Property is an ideal way to do this if the company owns some real estate, since they do not have to divert cash from their business," noted Dr Altman.

In her view, all companies should consider this option, since she says it does not affect the running of the business as much and the property is simply handed over to the pension scheme if the enterprise ends up failing.

Dr Altman added that such a strategy "makes sense" for many firms.

Click here for more pensions newsADNFCR-323-ID-19784031-ADNFCR

Related News : Pensions

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet