SIAS Talk on Pension Freedoms

About the Meeting

This talk will be given by Ian McKeever, based on his paper (click here for link) on pension freedoms, and provides a different take on the problem of investment after retirement.

High-level agenda:

1. For someone retiring today, dying earlier than expected is not a financial problem but dying later than expected is. They need an investment time horizon of 30 years plus.
2. As Winston Churchill once said, “The farther back you can look, the farther forward you are likely to see.” A look at the history of equity markets and equity dividends.
3. A strategy using equity dividends to provide a level income in retirement. How it would have fared in the past?
4. Inflation. For the working population, inflation is like a broken arm; painful at the time but eventually one recovers. For the retired, it is like a brain tumour, the damage is permanent, and any recovery is at best marginal. Inflation in the past and how much protection equity dividends provided.
5. Longevity risk. Annuities: poor investment; good longevity insurance.
6. Managing divestment in volatile markets. Resurrecting annuity shares.
7. Practical issues of portfolio construction for a retiree investing directly, diversification, future proofing, international investment and withholding tax.
8. Product design issues for the Financial Services Industry.

Please arrive at 5.30pm to sign-in before a 6pm start.

Sandwiches and drinks will be served after the talk.