Geopolitics has broken economics, according to BBC News economics editor, Faisal Islam, but the changes from frontier technology could be “even more profound”.

Speaking at the Pensions UK Investment Conference 2026, Islam highlighted energy shocks, supply chain chaos and the return of inflation as examples.

“Whilst I thought we had got through the worst of that, the past week seems to have changed that. It felt more stable, but it isn’t,” he said, referring to the huge increase in oil prices since the beginning of the US and Israel’s war with Iran.

However, he believes the changes from frontier technology will be “even more profound” and could impact pensions.

“We’re rightly concerned about Generation X’s saving habits and the focus on the short term. The selfie generation can’t even comprehend the process of ageing, let alone financially planning for it,” he said.

Artificial intelligence (AI), he believes, will bring “tremendous opportunities” for the UK with knock-on effects for pension savings as jobs are automated.

He explained: “Private pensions were an intrinsic part of the system involving the career ladder, but in the services industries, the bottom rung of that ladder may be breaking as companies automate entry-level jobs, more in financial services and creative industries.

“What does that mean for the generational compact, of which pension provision is a vital part?”

Speaking directly to delegates, he said they are “long-term investors in a very short-term world”.

He stated: “You are legally bound while politicians demand you to support their shorter-term growth agendas. These changes aren’t going away; the changes in globalisation aren’t going away. Can you deliver in this world of change?”

In addition, Islam also spoke briefly about Chancellor, Rachel Reeves, noting that she is “obsessive” about numbers and economics, and is “genuinely obsessed” with pensions reorganisation and infrastructure.

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