The current era of "uniquely low predictability" is one of the main causes for the tough environment that pension funds are finding themselves in according to former UK Prime Minister Tony Blair.

Speaking at the National Association of Pension Funds (NAPF) Investment Conference in Edinburgh, Blair stated that the "speed of change" in the current economic environment has made it extremely difficult to predict trends and therefore make financial decisions.

He added that "deeper and longer term causes that exacerbate the challenges include the impact of population ageing and the fact that the working population will have to support many more people in older age".

However, whilst acknowledging the fact that the financial crisis has had a significant impact on UK austerity measures and the eurozone, Blair said that "fundamental reforms in pensions were necessary anyway, before the 2008 crisis had occurred". He stated that the financial crisis has simply made the need for pension reforms more immediate.

Blair concluded by saying that there is room for optimism however, stating that "no economic model in the world is better than the UK's" and the "essential model is correct".

Share Story: