the case for greater equity exposure

As people live longer in retirement they are going to have to take on equity risk to generate the re...

As people live longer in retirement they are going to have to take on equity risk to generate the returns necessary to support their lifestyle. In 1951 just 0.4% of the population were aged 85 or over but by 2001 that had grown to 1.9% of the population. The Government is in danger of lagging behind this demographic reality with its insistence on compulsory annuity purchase. This forces many to rely on a gilt and corporate bond backed retirement portfolio, with little protection against the long-term effects of inflation, to see them through the rest of their lives. This Investment Week g...