Pension CRISIS: How would the UK solve a retirement TIME-BOMB?

Press review Daily Express "(...) As the goalposts continue to move for savers, Professor Lionel Martellini, Director of the EDHEC-Risk Institute, urged future retirees to start planning now for their golden years. Professor Martellini spoke to Express.co.uk about how to avoid a pensions crisis in an economy where individual investors are becoming increasingly responsible for their own saving. One of the key issues, according to Professor Martellini, is that public and private pension schemes almost always deliver replacement income which is lower than labour income. He added: “The gap is sometimes severe. “According to the OECD, an individual with average earnings in the United States can expect to receive merely 49.1 percent of labour income from mandatory pension arrangements when retiring. “The replacement rate falls to 29.0 percent in the United Kingdom. “With the need to supplement public and private retirement benefits via voluntary contributions, individuals are becoming more and more responsible for their own retirement savings and investment decisions.” This global trend poses substantial challenges to individuals, he said, who often lack the expertise required to make such complex financial decisions. (...) Copyright Daily Express https://www.express.co.uk/finance/personalfinance/1103997/Pension-news-uk-state… 2019