UK pension schemes face death spiral as consumers look to SIPPs

UK pension schemes face ‘death spiral’ as consumers look to SIPPs

As a leading land investments company, Crown World (http://www.crownworld.com/) offers its prestigious Cayman land for sale as part of a SIPP (Self Invested Personal Pension). Alternative investments as part of a pension plan have never looked more appealing, especially now a leading economist has declared that final salary pension schemes in Britain are facing a ‘death spiral’.

Land investments have increasingly been used to help shore up people’s retirement, ever since real estate was allowed as an investment vehicle within the SIPPs wrapper (the term for a financial service which brings together any current pension schemes and other investments). Property SIPPs came into being when the pension rules changed in April, 2006. Certain types of land investments offer far more safety than the speculation used by many pension fund managers. For instance, land investments in the Cayman Islands benefit from the fact that the Islands operate under British Common Law and have a land registry which was created by a UK-government sponsored initiative.

It’s little wonder that so many people are choosing to shift the security of their future over to quality land investments such as those found in the Cayman Islands, given that leading figures are claiming that the Bank of England’s policy of quantitative easing (QE) has done “irreparable damage” to Britain’s final salary pension schemes. Ros Altmann, the Director General of the over 50s group Saga and expert economist, explained: "This is turning into a 'death spiral'. The lower gilt yields fall, the worse pension deficits become. The worse pension deficits become, the more trustees will feel they need to 'de-risk'. This often means buying more gilts which itself means worse deficits because trustees are competing with the Bank of England, which is also trying to buy gilts due to QE." According to Altmann, pension deficits at FTSE 100 companies have more than doubled in 2012.

A few years ago, a land pension or property pension was a new product which was attracting interest, but now, given the extensive damage done by QE, property and land SIPPs are looking like the natural choice for those who demand more stability for their pension and consequently for their future. Find out more about investing in Cayman land for your SIPP at http://www.crownworld.com/.