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Adrian Boulding: "The mathematics is clear – if the pension has increases that are inflation-linked, or fixed increases of 2% or more, both of which are fairly common for DB, then gilts just do not keep up with the payments!"
Extreme investment caution is killing off final salary pensions, believes Adrian Boulding - and, within that, there is a stark message too for the defined contribution saver
The strange and bizarre world of final salary pensions continues to throw up surprises. Open a newspaper at the City pages and you would think the schemes were in real trouble. Talk of deficits abound....
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