Good Pension News? Is It Possible
Updated : Jun 4, 2009
VeryHappyPig is not afraid to admit we has no idea what a pension levy is, but VHP understands they must be bad words. Anytime VHP has heard said words they have been accompanied by a fit of moaning or have been used in an angry out burst. In fact recently pensions are getting more bad press than Jordan and Fianna Fail put together.
Not on VeryHappyPig, however, we don’t do bad press and we can even bring you good pension news!
Irish pension funds have been boosted by between €8bn and €10bn after two months of rising stock markets and favourable bond yields.
The results were outlined by benefits consultant Mercer, which said that markets have been boosted by initial signs of the much-talked about 'green shoots of recovery', and the decisive actions of governments and central banks on interest rates and stimulus packages.
Noel Collins, a senior investment consultant with Mercer, said global and European stock markets have rallied by about 25pc from levels seen earlier in the year. The Iseq index of Irish stocks has jumped by about 35pc over the same period.
Long-term interest rates, which determine the financial liabilities of pension funds, have also increased as markets take note of the positive outlook and price-in the prospect of a return of inflation over the next few years.
Mr Collins said: "The recent good experience will have reduced pension deficits by a factor of approximately one third, but significant deficit positions remain and will need to be tackled."
Mr Collins said that a more solid financial footing for pension schemes will be required in future, and most schemes require a thorough review of benefit and contribution levels.
