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How do low interest rates damage pensions?
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Take a defined contribution pension for example - shouldn't the amount of return on investment that the saver gets be independent of interest rates, because it just depends how profitable the companies are that the pension is being invested in?
Or is it a case of the saver getting whatever interest rate the pension provider offers them, regardless of the dividends the pension provider is getting?
If so, how would this interest rate be affected by the base rate set by central banks?
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