"Third Way" - An Introduction:
This is an explanatory document about the evolution of Pensions in the UK now encompassing the benefits of globalisation, guarantees and Qualifying Recognised Overseas Pension Schemes (QROPS).
The Third Way looks at solutions to the volatility in investment markets and what appear to be long term low interest rates. These factors are beyond the control of individual investors but that have a huge impact on the willingness of individuals to make provision for retirement.
The recent credit crisis has hugely damaged Pensions and Pensioners. Long held assumptions relating to pensions seem to have been swept away. The stock market’s volatility has resulted in pensions significantly dropping in value. The FTSE 100 index is still more than 20% lower than its peak in December 1999. The Bank of England have printed money to buy gilts, employers are cutting contributions - often substantially - to employee pension schemes and annuity rates have plummeted. The timing of this could not have been worse.
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