Stress test: The outlook for pensions post-Brexit

The immediate pain of the Brexit vote was seen in headlines proclaiming that the UK's pension deficit has reached £1trn. Actually, the negative and positive implications of the vote will ricochet through the global economy and financial markets for years to come. Starting with economic activity, an uncertainty shock of this size will cause the UK to slow materially, and Europe more modestly, into 2017, certainly requiring a central bank response - probably a fiscal response in due course too. Early, aggressive and co-ordinated easing would be a precondition for a better outcome. We...