Tag Archives: inter-generational fairness

Low for long: what does this mean for defined-benefit pensions in the UK?

Frank Eich and Jumana Saleheen.

Despite the fact that the financial crisis erupted nearly a decade ago, its legacy is still being felt today.  Disappointingly weak growth and low interest rates are arguably part of that legacy (though other developments also matter), and policy makers are increasingly worried that these are no longer temporary phenomena but instead have become permanent features.  This blog assesses what a prolonged period of weak growth and low interest rates (sometimes also referred to by “secular stagnation” or “low for long”) might mean for the viability of defined-benefit (DB) occupational pension schemes in the UK and what financial stability risks might arise as a result of a changing business environment.

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