Quizzes & Puzzles7 mins ago
What Are Pension Liabilities?
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Can anyone explain in simple terms what pension liabilities are please? I have been online to look at a FSAVC type second pension and there was a hefty negative number against the word liabilities which looks terrifying.
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The size of the deficit on its own doesn't matter, as it's simply an indication of how much the fund is committed to paying out. (So a pension fund that's operated for the benefit of a small number of future pensioners will have a relatively small deficit but a pension fund for the benefit of hundreds of thousands of future pensioners will have a massive deficit).
What matters is either the ratio of the fund's assets to its liabilities (called the 'funding level') or just the simple difference between the two (called the 'surplus' or 'deficit', as appropriate).
What matters is either the ratio of the fund's assets to its liabilities (called the 'funding level') or just the simple difference between the two (called the 'surplus' or 'deficit', as appropriate).
I haven't started drawing on this pension as yet either. I simply looked in to see how it was doing, but on the overview I have now got this new 'liabilities' figure on my personal account overview. Never seen it on there before and am quite terrified. Will probably ask for a phone call with them tomorrow. But thank you for all the answers.
Are you trying to assess whether a fund is any good or not
by looking at its balance sheet?
You would be better off asking around your work ( for what they do for a second pension - which one is your first?)
Pension liability should have a date on it -
and it is the sum governed by EU law !
that if on that date, every possible pension became payable, even tho some are gonna be three years or five weeks rather than 35 y
and phe-dung - give the figure.
You will see that altho it is a figure regulated by law ( no really) it doesnt give much info
and so you can see that the NHS pension liability ( and deficit) is £168bn because - - - there is no pension pot. Zero - nichts. It is all paid for by current contribution.
I wanted to see what Ubasses and Buenchico had to say
I seem to be the only person to know that
sooooo....altho research is a good thing, assessing the viablity of a FSAVC pension scheme is difficult
Mine was Frenz Prov then bought by AXA - and of course you couldnt tell that when I entered ( 1990)
by looking at its balance sheet?
You would be better off asking around your work ( for what they do for a second pension - which one is your first?)
Pension liability should have a date on it -
and it is the sum governed by EU law !
that if on that date, every possible pension became payable, even tho some are gonna be three years or five weeks rather than 35 y
and phe-dung - give the figure.
You will see that altho it is a figure regulated by law ( no really) it doesnt give much info
and so you can see that the NHS pension liability ( and deficit) is £168bn because - - - there is no pension pot. Zero - nichts. It is all paid for by current contribution.
I wanted to see what Ubasses and Buenchico had to say
I seem to be the only person to know that
sooooo....altho research is a good thing, assessing the viablity of a FSAVC pension scheme is difficult
Mine was Frenz Prov then bought by AXA - and of course you couldnt tell that when I entered ( 1990)
When I log into my account for this second pension, which I still pay into and do not draw from as yet, there is my own overview page. It says investment portfolio value. There are 3 sections on my 'Porfolio breakdown' ...Assets (value of my home) pension (which is what I hope is the amount saved thus far) and then Liabilities a large negative amount. But my main 'total' definitely has this huge liability amount taken off my (house value + pension amount)
Just to update everyone who has helped- I have discovered the liabilities amount was because they think I still have an outstanding mortgage. I have just updated my information to show I have non and now the figure has been removed. I feel very foolish but very relieved right now! Thank you all again.
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