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Collapse of Monarch airlines is warning to pensions savers

17 October 2017

The collapse of Monarch airlines has left yet another pension fund in question, and should serve as a warning to those on the cusp of retirement, says the CEO of deVere Group.

Nigel Green, founder and CEO of deVere Group, says the high profile collapse of the airline, together with accusations of asset-stripping, should be viewed as a “not-to-be-ignored red flag” for those saving into pensions.

Green’s comments follow reports that the pension fund, which is in the government-sponsored Pension Protection Fund (PPF), could have been left short when it went under in 2014.

Green said: “The PPF is an invaluable resource. But with UK final-salary pension schemes now having an alarming £1.6tn of liabilities and a £224bn deficit, and the problem only getting worse, it can be reasonably assumed that it is perhaps seriously feeling the squeeze.  How many more high profile collapses could it sustain?”

He continued: “The truth is despite rising equity markets and a global outlook looking relatively rosy, many firms are still battling to fund their pension schemes. It is crucial for pension members to understand exactly what represents a risk to their pensions and how these can be mitigated.

“In the same way people have their cars regularly serviced, it is now more important than ever that individuals seek independent advice on an annual basis to ensure that they are completely aware of their pensions and how much they should expect to receive in retirement.”

Green believes now is the time for pension investors to check that they are properly diversified to mitigate the increasing threats to their retirement funds.

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