Skip to content

Shares slump unsettles pension pots

Millions of people approaching retirement are being caught in the crossfire of the stock market turmoil which has wiped trillions off share prices across the world.

The 10 per cent fall in the FTSE 100 shares index could directly affect the eight million Britons who have their pension funds invested in money purchase or defined contribution schemes, where the size of an annual pension is usually linked to how stock markets perform.

The problem has been exacerbated by Britain's emergence as a safe haven for overseas bond investors during recent upheavals including the United States' credit rating downgrade by Standard and Poor's.

This has seen UK Government bonds (or gilts) plunge to their lowest level in decades, which in turn has hit the rates available on the annuities people buy with their pension pots to provide a retirement income.

This follows a 15 per cent fall in annuity rates over the past three years.

Copyright © Press Association 2011

Find Your Financial Consultant

Financial Consultant Form

More information about FCs

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd. which is authorised and regulated by the Financial Conduct Authority. Personal Loans and savings accounts are provided by Wesleyan Bank Ltd which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Bank Ltd subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Wesleyan Unit Trust Managers Ltd. is authorised and regulated by the Financial Conduct Authority.

Click for more information about the Wesleyan group of companies.

© 2015 Wesleyan Assurance Society