Ensuring the long-term effectiveness of funded pension schemes  But there are also two other factors which in the future will considerably affect the ability of funded pension schemes to meet their goal of providing pensioners with adequate retirement income. The first is the crucial importance of robust economic growth. The second is the design of the decumulation phase.
This assumes that the mortgage was linked to the six-month LIBOR, that LIBOR was at its 2006 average value of 5.37 percent, and that the mortgage had a margin of six percentage points. 4  BIS Review 14/2008  consumer actions, coupled with its careful avoidance of prescribing quantitative underwriting thresholds, could raise compliance and litigation risk.