Saga says low interest rates could be negative for pensions calculators

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Saga says low interest rates could be negative for pensions calculators

Wed 17th Nov 2010

The dangers of low interest rates for pensioners have been highlighted by the director general of Saga Dr Ros Altmann.

She explained retirees are currently dealing with low rates of return on their savings, which many older people rely on to supplement their state pension.

Dr Altmann is also reportedly worried about the effect low interest rates are having on the asset markets, annuities and long-term economic growth in the UK.

The Saga chief urged the government to help older people by issuing pensioner bonds or bringing back National Savings products for retirees.

In her view, consumers who have finished their working lives are struggling to deal with inflation levels and they need help.

A spokesperson from Saga noted: "Ros warns policymakers that the current period of low interest rates risks causing another financial crash, possibly worse than the last one."

Recently, Dr Altmann warned the government it is also in danger of running into a care crisis, with "decisive change" required.

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