What protects your pension when a company like Carillion collapses?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 19 January 2018
⏱️ 44 minutes
🧾️ Download transcript
Summary
The collapse of Carillion this week brought how Britain runs itself into the spotlight, but it also left many workers wondering about their money.
And it's not just their wages that are a concern, the safety of people's final salary pensions is a major worry when a company collapses.
In this week's podcast, Simon Lambert, Rachel Rickard Straus and Georgie Frost look at how safe your pension is and what backs it up.
They also discuss whether it is wise handing over so much of the UK’s public service and projects to private companies looking to turn a profit for shareholders - and what happens to people's finances when that goes wrong?
If you’ve always wanted to understand the business of the private finance initiative (PFI) – this week’s show is a must listen.
Alongside that we discuss the continuing madness of the cryptocurrency boom, including the alternatives to bitcoin and how ripple rose 84% in 24 hours.
We also reveal the savings rate postcode lottery and ask that all important question, should you spend your money now and enjoy it or save it for the kids' inheritance?
Enjoy.
Transcript
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| 0:00.0 | Welcome to This Is Money podcast in partnership with NSNI, bringing your weekly roundup of the top personal finance, consumer and business stories that editor Simon Lambert and his team have been covering on their reward-winning website. |
| 0:13.0 | I'm your host, Georgie Frost, and joining Simon Nye is personal finance editor Rachel Rickard Strauss. And on the agenda today, what on earth went wrong |
| 0:22.5 | a carillion? What faith can we now have in company hierarchies, in boards, auditors, government |
| 0:28.5 | contracts and workplace pensions? The outsourcing and construction giant is the latest high-profile |
| 0:35.2 | failure of a company with a large pension deficit. Simon gets |
| 0:39.6 | stuck in. Also today we look at the Postcode Lottery for Savers, poor cold water on millennials, |
| 0:45.7 | hoping for a financial leg up from their folks, and as Bitcoin is so last year, darling, |
| 0:51.5 | what are the next cryptocurrency bandwagons that we can jump on? |
| 0:56.0 | All that and plenty more coming up. |
| 0:57.7 | Don't forget you can stay up to date with all the latest breaking money news. |
| 1:00.7 | Just go to this ismoney.com.uk or download the app. |
| 1:05.2 | This is Money, brought to you in partnership with NS&I, giving you 100% security for your savings, backed by HM Treasury. |
| 1:15.1 | So the talk this week has been the collapse of Carillion, with the impact being felt across the UK and indeed beyond. |
| 1:21.8 | From jobs all over to roads in Scotland, regeneration projects in the North East, hospitals in the Midlands, |
| 1:28.7 | but it doesn't stop there. |
| 1:35.8 | The tentacles of the construction and outsourcing giant reaches to home building, cleaning of trains and even school dinners. |
| 1:40.9 | Questions have been asked of the management, the board, the auditors and of course the government, |
| 1:45.5 | particularly why contracts were given when it was known Carillion was in such trouble. |
| 1:55.3 | So how have we gone from a billion pound company to liquidation, collapsing with debts of 900 million and a pension deficit of 600 million? |
| 2:02.5 | We'll get to the question around the system of private finance initiatives and the safety of final salary or other defined benefit pensions. |
| 2:04.6 | But first, Simon, a warm welcome. |
| 2:07.9 | Who are Corrillion? What on earth went wrong? |
... |
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