Financial Times, March 15th 2004, p.6
Life expectancy for retired people is on course to improve even more dramatically over the next 20 years, placing enormous strains on state and private pension schemes and insurers. A report from the Institute and Faculty of Actuaries concludes that increased life expectancy poses as great a threat to the solvency of pension schemes as falling stock markets.
(See also the full text of the report Longevity in the 21st century: the cohort effect: insights and explanations in PDF format)
Financial Times, March 25th 2004, p. 2
The requirement for people with defined contribution pensions to buy inflation-linked annuities when they retire may be dropped by the government. Inflation-linking can cut initial pension payments by nearly half and substantially reduce the lifetime payout. The reform, which Malcolm Wickes, Pensions Minister, said yesterday was under consideration, would allow those who retire to buy a much bigger initial pension. However, it would expose them to the risk of steep losses in purchasing power if inflation surged.
Department for Work and Pensions
London: TSO, 2004 (Cm 6111)
Sets out a strategy for breaking down barriers to saving and making sure people have the information they need to plan for retirement. It aims to: