FT Letter: Power of Pension Investments Can Stimulate the economy - Ros Altmann
  • ROS ALTMANN

    Ros is a leading authority on later life issues, including pensions,
    social care and retirement policy. Numerous major awards have recognised
    her work to demystify finance and make pensions work better for people.
    She was the UK Pensions Minister from 2015 – 16 and is a member
    of the House of Lords where she sits as Baroness Altmann of Tottenham.

  • Ros Altmann

    Ros Altmann

    FT Letter: Power of Pension Investments Can Stimulate the economy

    FT Letter: Power of Pension Investments Can Stimulate the economy

    LETTER PUBLISHED IN FINANCIAL TIMES, 22 FEBRUARY 2012

    Sir

    Ian Mulheirn advises the Chancellor to reduce tax-free ISA allowances and pensioner tax benefits. He suggests the money freed up could generate £50bn for infrastructure investment projects over four years, which would offer a growth strategy while cutting the fiscal deficit (20 February). We do not need to penalise savers or pensioners to achieve this though. Surely, it makes more sense to use the billions of pounds already set aside for future retirement income, which is currently languishing in low-interest government bonds. Pension funds are desperate for better returns and the long-term inflation linked return profile of successful infrastructure projects, with some capital upside as well, is ideally suited to pension liabilities. There are funds available already thanks to past pension savings. It would be far better to provide a state underpin to long-term, job-creating projects than to keep printing new money and force government bond yields to ever more over-valued levels. Let’s harness the power of pension investments to help stimulate the economy and generate better returns for the future.

     

    Yours faithfully,

    Dr. Ros Altmann
    Director-General
    The Saga Group

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