Malcolm McLean calls again for the Bank of England to urgently rethink its policy of Quantitative Easing
Barnett Waddingham consultant Malcolm McLean
calls again for the Bank of England to urgently rethink its policy of Quantitative Easing (QE) following today’s announcement to inject another £50bn into the economy. Malcolm McLean
estimates that since the Bank started QE in March 2009 a 65 year old man with a pension pot of £100,000 will now receive at least £1000 a year less on a new annuity than he would have done in 2009.
“The benefits of QE to the wider economy and for stimulating growth are at best doubtful but the impact on pensions and new or soon to be pensioners is of the greatest concern.
“This reduction of £1000 a year could have a serious impact on pensioners’ quality of living for the rest of their life. If a pensioner were to live for another 30 years that would be a loss in excess £30,000.
“An individual in this situation would have very limited options given that QE was having a damaging effect on drawdown arrangements as well. Staying on at work for a few extra years if that were possible might help the individual offset some of the loss but could have a wider impact in creating unemployment for younger generations – another damaging wider effect of the policy.”
For more information please contact Malcolm McLean
or Steph Gold