FTSE Companies Payout Billions to Shareholders despite Pension Black Hole

Dec 13, 2016 | Retirement Planning

Protect your Pension by Seeking Financial Advice

A recent article in the Daily Mail has revealed that despite massive pension black holes, 54 companies from the FTSE 100 index have made huge shareholder payouts.

The research comes from AJ Bell. Their figures show that the companies concerned have paid out £48 billion in shareholder payouts despite having a collective black hole of £52 billion.

Royal Dutch Shell for example paid out £8 billion in shareholder payouts in 2015. In 2014, they had a black hole of £6.7 billion. Pharmaceutical giant Astra Zeneca paid out £2.4 billion despite the £1.9 billion pension pot deficit.

GlaxoSmithKline paid out £3.9 billion in 2015 despite the £1.9 billion black hole in 2014.

As Russ Mould of AJ Bell points out, employees at these firms may not receive the pension pot they thought they would get. He said:

“Insufficient contributions to the pension fund could leave the company with hefty liabilities which could drag on future performance and ultimately lead to staff receiving lower pensions if the business runs in to difficulties and enters administration.”

The research follows official figures released by the Pension Protection Fund (PPF). Their figures show a collective deficit of £294.6 billion at the end of May. At the end of April, it was £270 billion. The figures were amassed from 5,945 large pension schemes which the PPF monitors.

Recently, long established British Retailer BHS revealed it had a black hole of £571 million. The business is now in liquidation.

With companies choosing to pay out shareholders rather than honour their pension responsibilities, how can you protect your pension pot?

Financial Advice – the only way to protect your pension

My award winning financial advice will find you a pension independent of company schemes which you have little or no control over. The products will be tailored to maximise your investments, avoiding the shareholder payout problem highlighted by AJ Bell.

To make the most of your investment, click here and complete the Call Back Service form. The sooner you start your own pension fund, the sooner you can avoid becoming a pension black hole victim.

Source: Mail Online

For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]


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