The Organisation for Economic Co-operation and Development (OECD) is warning that the current strain we are witnessing on both public and private pension arrangements, and the annuity market, could bring about a crisis that lasts for many, many years. Its 2009 analysis of pension arrangements on a worldwide scale shows that private pension plans lost 23% of their value in 2008, with those pensioners relying upon defined contribution plans feeling the worst of the effects, having a lot less in the kitty to buy their pension with.
In addition, those who have recently retired and have not yet purchased a pension annuity are also set to experience difficult times, the OECD predicted. Their secretary general, Angel Gurria, stated that reforming pension arrangements now to make them both more affordable and strong enough to provide ongoing protection against stockmarket swings will save governments a great deal of financial and political pain in the future.
Earlier this week, the CBI also warned that a pensions crisis is looming, with the closures of many company pension schemes widening the gap that exists between state and private sector pension plans even further. Mind you, both the OECD and the CBI would agree that you can help yourself in some way; check out annuity quotes, find the best annuity rates, and make yourself just that bit better off in retirement.
