Quantitative easing `dangerous for pensions`
17 March 2009
An expert economist has warned that quantitative easing could have negative implications for pension savers across the UK, londonstockexchange.com reports.
Economist, investment banker and pension industry adviser Dr Ros Altmann described the measure as "exceedingly dangerous" for pension savers, because buying up Government and corporate bonds will reduce yields, which increases pension funds` liabilities.
This ultimately means that the value of what a pension pot can buy is reduced.
A spokesperson for Think Money said: "Without a good pension, workers risk financial difficulties and potential debt problems in retirement, so it`s vital they ensure that their money is safe."
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Tags: debt, quantitative easing, pension, save, savings, retirement, yields, debt problems
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