Serious pension troubles on the horizon, warns OECD

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Serious pension troubles on the horizon, warns OECD

Wed 24th Jun 2009

The Organisation for Economic Co-operation and Development (OECD) has warned that the current strain on both public and private pensions could bring about a decades-long crisis.

Its 2009 analysis of pensions on a global scale shows that private pension plans lost 23 per cent of their value in 2008, with pensioners relying upon defined contributions feeling the worst of the effects.

Those who have recently retired and have not purchased annuity are also set to experience hard times, the OECD predicted.

Secretary general of the organisation Angel Gurria said: "Reforming pension systems now to make them both affordable and strong enough to provide protection against market swings will save governments a lot of financial and political pain in the future."

Earlier this week, the CBI warned that a pensions crisis is looming for the UK, with the closures of company pension schemes widening the gap between state and private sector pension plans.

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