Funded provision will not solve the demographic crisis facing the pensions industry, accord-ing to B...
Funded provision will not solve the demographic crisis facing the pensions industry, accord-ing to Barclays. Its 45th Gilt-Equity study argues that while the unfunded system is unsustainable, funded provision has its own set of difficulties. Principally the return on investment is reduced by the impact of demographic changes. The survey suggests the sheer size of the estimated £800bn funded pension system in the UK, combined with the obligation to deliver guaranteed returns is dragging down bond yields to sub-growth levels. Tim Bond and Kevin Adams, authors of the report, argue this me...
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