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Mike is an award-winning financial expert and a well-known leader in the financial industry.Having taken two of his previous firms to Chartered Status in the UK and also achieved the prestigious National IFA of the Year Award – Highly Commended.In addition, Mike is a well known Independent Financial Adviser and Money Coach. Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.

Why HSBC closing its pension scheme is a ‘wake-up call’

Mike CoadyFinancial News Why HSBC closing its pension scheme is a ‘wake-up call’

Why HSBC closing its pension scheme is a ‘wake-up call’

News that HSBC is to close its defined benefit (DB) pension scheme from next summer for all existing members is, to my mind, further evidence that financial freedom in retirement is increasingly becoming a personal responsibility for everyone

The banking giant, which says that members of its DB pension fund will not be able to make contributions after 3Oth June 2014, is the latest in a long line of high-profile firms, including Barclays, which have in recent times announced plans to scrap their pension schemes due to soaring liabilities, driven in no small part by the Bank of England’s quantitative easing programme and increasing longevity.

Indeed, according to research carried out by the National Association of Pension Funds (NAPF), companies are shutting their final salary pension schemes at a faster rate than ever before.  And, the report suggests, those schemes which are – currently – to remain running will change their terms to offer less favourable conditions to their members.

Retirement, a ‘personal responsibility’

This, coupled with the fact the State is clearly going to be able to provide less and less financial support for pensioners due to the ageing population and the country’s ongoing economic woes, and because we’re all living longer, meaning the money has to go further, strengthens the case that everyone now needs to make their own provision for their retirement.

With this in mind, the financial advisory sector and the government need to work together to ensure that as many people as possible are saving – and as early as possible – for their so-called ‘leisure years.’

Sadly, it would appear that unless people truly embrace the concept of putting money aside, they might not be able to enjoy the kind of retirement that they had hoped for.

As various independent studies show, the best way to devise – and, crucially, stick to – a comprehensive strategy to achieve long term financial objectives is with an independent financial adviser.  I would urge all those who are wishing for a long, active and fulfilled retirement to contact their IFA sooner rather than later to discuss private pension options.

Mike Coady
Mike Coady

Mike is recognised at the forefront of financial planning as a financial advice mentor who demands only the best outcomes for both individuals and businesses he works alongside.

  • This has been coming for years. Ever since the 1995 Pensions Act where layers of regulation were chucked at Final salary schemes, along with no-one wanting to accept responsibility for the management of the schemes (no one ever got fired for buying an IBM attitude), ultimately meaning the increased costs land on the employer, who at some point says ENOUGH. Important thing is though that individuals realise that they now bear the risk of funding and the responsibility of planning

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