CPB Memorandum 211
Pension savings up in smoke
8 December 2008
Having a large pot of retirement savings seems reassuring- until, that is, the saved (and invested) funds suddenly go up in smoke, due to a worldwide fall in asset prices. That is what happened with the capital of our fully funded pension schemes during the dot.com crisis. And now, just a few years down the road, it is happening again. How reassuring! During the previous crisis, the negative impact on the real economy was substantial, due to large increases in pension contributions. This time, the impact is expected to be less sizeable.
Download PDF file (28 Kbytes)
