What is wrong with the world’s pension systems? In the UK they make up two-thirds of household financial wealth. Yet today, it is impossible for a young person working in the private sector to secure, at reasonable cost, a predictable income which they know will last from the time they retire until the time they die.
Yet it is the very purpose of a pension to provide such an income. So the question arises, how could we have lost sight of the purpose of our private pension system. And if it can happen for pensions, can it also happen for other financial services; could whole elements of the financial system be ‘purposeless’?
More optimistically, there are solutions on the horizon for the pensions conundrum. Indeed, it is entirely possible that within a few years young people will be able to secure a proper low cost pension.
This discussion with David Pitt-Watson will discuss why purposeless activity has been allowed to thrive, and how lesson learned from recent pension reform can offer a solution.
Speaker: David Pitt-Watson former Pembroke Professor of Finance at Cambridge University, where he remains a Fellow. For a generation he has been a leading investor and campaigner; founder of Hermes responsible investment activity, Chair of the UN Environment’s Finance Initiative for the Paris Conference, non-executive at KPMG, Treasurer of Oxfam, and a campaigner, advisor and board member to governments, companies and NGO’s.