Irish Financial Review

Wealthy sports stars forced to save for retirement

Finally, there is some recognition that money management skills are needed at every level of society. It no longer about the less well-off, even the ridiculously wealthy need help too!

In the US, National Basketball Association players, who were paid an average of about US$5 million last season, will be forced for the first time to save money for retirement.

NBA athletes forced to plan for retirement

Wealthy sports athletes forced to plan for retirement

The program is part of the 10-year collective bargaining agreement between the NBA and the players union that ended a lockout in November.

Former NBA players Scottie Pippen, Latrell Sprewell and Antoine Walker are among retired professional athletes who have experienced financial difficulty after careers in which they earned tens of millions of dollars. Antoine Walker filed for bankruptcy after being paid more than $100 million over 12 years in the NBA.

Retired players can access the money before their pensions begin at age 50. Players can take an early pension at 45, Klempner said.

Basketball-related income in the NBA will top $4 billion next season, meaning the amount of forced savings also will rise.

Beginning next season, players also will surrender 5 percent to 10 percent of their salary for retirement. They automatically will be enrolled in the program and would have to opt-out to keep from participating in the plan.

Investment details for that plan aren’t complete.

Permanent TSB expected to close one-in-five branches

The CEO of Permanent TSB Mr. Jeremy Masding has told the Oireachtas Joint Committee on Finance that the bank is preparing to significantly reduce branch numbers as well as staff numbers. Details of the cost cutting drive are expected to be announced next week.

Jeremy Masding

Reports in some media estimate that the bank could close one-in-five of its 92 branches nationwide.

Separately, in a further drive to increase the profitability of the bank, it has published lower rates it will begin paying on a broad range of deposit accounts, including those it took over from the former Irish Nationwide Building Society.

Permanent TSB is the latest in a strong of banks that have either hinted or announced plans to close branches as a way of returning it to profitability. National Irish Bank recently announced that it would be closing the majority of its national branch network. AIB is also reported to be at an advanced stage of branch closures, a move which would follow a similar decision on branches in the UK.

Ulster Bank to offer compensation

Ulster Bank chief executive Jim Brown is reported as being in talks with the Financial Regulator about how to apply compensation to customers affected by the recent technical problems at the bank. Details of the compensation scheme are expected to be announced shortly.

Ulster Bank to offer compensation

Ulster Bank is set to offer compensation to customers affected by recent technical problems

Mr Brown estimated that it would take several more weeks to finally clear a backlog of transactions built-up during the technical fault.

Most Ulster Bank customer accounts are now up-to-date, although a “small percentage” of outstanding transactions were still being processed.

Ulster Bank has promised to refund all fees and charges that had been incurred by its customers or those of other banks as a result of the computer glitch that occurred last month, including overdraft fees and interest, late payment fees and interest on mortgages, loans and credit cards, and interest wrongly charged on late payments.

Customers would also be awarded all the interest on missing savings or current account payments, including interest on cash customers withdrew from savings accounts when wages were not paid on time.

Credit ratings would also be protected, the banks said.

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