BoE Warns on Pension Uncertainty
By: Elizabeth Rigby
Bank of England warned that even if people save for their old age, market
volatility could mean they could end up with less than they hoped for in
research, part of a wider study on the implications of an ageing
population by the Financial Services Authority, urges people to start
thinking about retirement sooner rather than later if they want to retain
a little glean to their golden years.
of the effects of people living longer is that they have to spread their
lifetime incomes over more years of life, implying a need for saving when
working," said Garry Young, author of the study.
the report goes on to stress that those relying on financial market
returns to top-up their pensions "could be much less lucky than those
who enjoyed the high returns of the 1980s and 1990s", particularly as
provision shifts from the public to the private sector.
patterns could have wider macroeconomic repercussions, warned Mr Young, if
"lower expenditure for the retired was intensified by lower spending
by those of working age who become concerned about their own retirement
research adds weight to the growing concern among policymakers over
provision for dramatically ageing populations across Europe as people live
longer and birth rates fall. Such fears have been compounded in recent
weeks by market turmoil coupled with the poor performance of some pension
average age in the UK is set to rise from 38.6 years in 1998 to 41.9 years
in 2021, with the number of over-75s rising sharply from 4.4m in 2000 to
8.3m in 2040.
FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Action on Aging distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.