Huge deficits mean around 600 pension funds are certain to collapse in the next decade, according to the Pensions Institute at Cass Business School. It says another 400 are also at risk. These funds have combined deficits of around £45 billion, a figure which could potentially overwhelm the PPF rescue fund.
Britain’s blue chips are dishing out billions more in dividends to shareholders despite a crisis in their pension funds. One investment group analysis shows that 54 companies in the FTSE 100 index have handed out £48billion to investors in the last two years despite having a £52 billion pension black hole.
Another commentator said that insufficient contributions to pension funds could leave companies 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.
Have you restructured your international investments?
On the 1st of January 2015, the Portuguese Tax Authorities brought about sweeping changes to its Personal Income Tax Legislation, specifically aimed at but not limited to, previously sheltered international investment structures. Six months into the 2015 fiscal tax year, there seems to be a wait and see attitude to the impending punitive tax burden that will be levied on investments held by both Portuguese nationals and Expat Tax Residents in Portugal.
One thing I do know and that is many international and national people still live in the past, thinking Portugal is a laissez-faire country unable to, with efficacy, diligently collect its taxes.