Billions wiped off workers' pension pots
- Hilary Osborne
- Monday October 27 2008 10.38 GMT
Falling share prices have wiped billions of pounds off the value of workers' pensions and could force some employees to delay retirement, research showed today.
The study, by employee benefits firm Aon Consulting, showed the value of defined contribution schemes offered by UK companies had dropped by nearly a third (28%) in the 12 months since last October, from £522bn to around £395bn.
Aon said employees and employers had paid £6.7bn into the schemes over the past year, but had lost around £157bn as shares plummeted around the world.
The losses could be even higher by the end of today if the FTSE fails to recover from falls this morning.
The loss of value will have a big impact on how much workers can expect to receive when they retire and could mean some people have to work longer than originally planned.