Economics of Age,Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, London, WC1V 7QJ, 16:00, 13 October 2009

Supported by Age Concern and Help the Aged

Within the context of the economic downturn, the ILC-UK, in partnership with the Actuarial Profession and Age Concern and Help the Aged, debated the current state of play in relation to decumulation policy.

The recent historical low in interest rates has highlighted the dependence that some retirees have on their savings. For many pensioners in the UK, perhaps especially those with relatively modest savings held in bank or building society accounts, recent economic events have created uncertainty and for some real financial difficulty. Not only have many seen their incomes fall to unexpectedly low levels but some have faced the fear of losing their money as banks around the world face difficulties or even collapse. In maintaining levels of income, some pensioners may now be eroding their capital.

Speakers at the event were:

  • Professor David Blake, Cass Business School
  • Jane Vass, Age Concern and Help the Aged
  • Jackie Wells, Fellow, ILC-UK
  • Niki Cleal, PPI

The speakers set out their views on different aspects of decumulation. Jane Vass set out new thinking on pension annuities and Jackie Wells presented new work which makes the case for purchased life annuities for people who want a guaranteed income in later life. Jackie's presentation can be downloaded here and her report can be downloaded below. Jane's presentation can be downloaded here. David Blake, Professor of Pension Economics from Cass Business school and Niki Cleal, PPI contributed their expertise on decumulation policy. Niki's presentation can be dowloaded here. Tom Boardman, Prudential joined the panel for the audience discussion.

Thanks to Age Concern and Help the Aged for their support in making this event possible.