volume 6, issue 3, P547-619 2000
DOI: 10.1017/s1357321700001896
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P.M.C. Meredith, N.P. Horsfall, J.M. Harrison, K. Kneller, J.M. Knight, R.F. Murphy

Abstract: This Working Party has considered the pensions implications of a prolonged period of low inflation. Experience in the United States of America suggests weaker correlation between equity and bond returns and greater overall volatility of returns. Without a further significant increase in the valuation of equities relative to their underlying economic activity, the cost of pensions will rise, possibly as much as doubling within the next 15 years. It follows that, for defined contribution schemes and personal pe…

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