THE Prince of Wales has been praised by pensions experts and older people's campaigners for warning that the retirement industry risks becoming "unfit for purpose" if it fails to adjust to the effects of an ageing population.
In a pre-recorded speech, Charles told pension funds that "your grandchildren, and mine for that matter, will be consigned to an exceptionally miserable future", if the sector merely concentrates on the short term.
Charles urged investors at the National Association of Pension Funds' conference in Manchester "to help shape a system designed for the 21st and not 19th century" by improving their approach to social and economic changes.
The Prince's comments follow a report from independent pensions expert and former Downing Street adviser Ros Altmann.
Earlier this week it called for an overhaul of pensions and argued they are "not fit for 21st century lives". Dr Altmann backed Charles's comments, saying: "Pensions are meant to deliver long-term value. What we don't want is to get hijacked by the short-term and sell our children's future away."
She said she hoped the Prince's comments will have an impact, adding: "We are living for today in a dangerous way."
Up to nine million more pension savers are expected to be created over the next five years as the Government's landmark reforms roll out to place people into workplace pensions automatically.
Official figures recently showed that the number of private sector workers saving into a company pension fell to an all-time low of 2.7 million last year.
Charles told pension funds they have "a need and arguably a duty, to ensure that these emerging environmental, social and economic risks are identified and managed".
He added: "With an ageing population and pension fund liabilities that are therefore stretching out for many decades, surely the current focus on quarterly capitalism is becoming increasingly unfit for purpose."
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