ROS ALTMANN COMMENTS ON QE DAMAGING SAVINGS AND PENSIONSMonday 18 June 2012
Ros Altmann, Director-General of Saga: "The Bank of England's policies have been a disaster for savers in general and pensioners in particular. Most of those with savings or pensions have seen their income decimated by policies that have tried to help borrowers and banks, at the expense of those who tried to put money aside for their future. Indeed, monetary policy has effectively imposed a 'stealth tax' on Britain's older generations.
ROS ALTMANN COMMENTS ON QE DAMAGING SAVINGS AND PENSIONS
Quantative Easing (QE) is a massive monetary experiment that has not clearly boosted the economy as intended but instead has boosted inflation and damaged pensions.
QE has damaged many areas of the economy. It has caused inflation which, especially as it has been coupled with low interest rates, has sapped consumer confidence and damaged people’s spending as well as their savings. This is particularly an issue for older generations who rely on the income generated from the savings they have worked hard for all their lives.
QE has also has decimated corporate pension funds, forcing some firms into bankruptcy while others have had to divert resources into supporting their pension schemes rather than business expansion. On top of this, QE has reduced over a million pensioners' incomes via annuity and drawdown income falls. These effects destroy jobs and growth, so it seems that policies designed to provide a temporary boost to our flagging economy have actually had the opposite effect
Surreptitiously reducing older people's assets is not a recipe for economic recovery."
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