Pensions warning by World Bank

LEADING World Bank official Richard Hinz warned yesterday that pension entitlements may have to be cut in half or people will have to work up to 10 years longer to achieve their financial retirement goals.

If we are to avoid a pensions time bomb, Mr Hinz said the issue for people in the future was whether they wanted “to eat well or sleep well.”

Responding to questions, Mr Hinz warned that individuals would have to shoulder much more of the responsibility for their own pension funds, as more and more employers were no longer prepared to bear all the risk related to pension funds because of the cost involved.