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Even with DB schemes their funding often relies on exposure to equities.
by bidirectional 5y ago
Even with DB schemes their funding often relies on exposure to equities.
- pjc50 5y agoYes, although the recipient is not supposed to be exposed to that - see the UCU strike starting today.
- iso1631 5y agoLOL, I searched for "UCU strike", the first result was "UCU strike calendar" They have so many strikes they need to organise them to make sure they don't overlap each other
- lotsofpulp 5y agoEveryone is exposed to it if they trade in the major currencies. The government will reduce the purchasing power of the currency to ensure the nominal returns to meet the defined benefit obligations are met. This, in turn, will boost the price of equities such as land and stocks, and eventually trickle down as inflation for food and fuel. You will get your defined benefit pension, but how much you can buy with it is variable. And it is going to be less than you think. That is the only way the equation balances with lower economic growth (especially due to lower population growth) and increased competition for resources from the other 7B people in the world.