The Impact of the Crisis on Pension Funds

Abstract:     
The crisis is likely to accelerate pension trends already at work. This further market shock highlighting the riskiness of company pension provision, and of equity investment, will probably accelerate the closure of existing DB schemes and encourage closer matching of assets with liabilities through longer-term bond investments. The increasing transfer of portfolio risk to households through mark-to-market DC schemes is likely to add further to factors encouraging an increase in savings in order to achieve a target minimum income in retirement.

Number of Pages in PDF File: 14

working papers series