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Pension turmoil to result in delayed retirements
25 September 2008 15:00
Employees are considering putting off retirement due to the turmoil pension funds are facing, ftadvisor.com has claimed.
The website reported that pension savings could have contracted in value in recent months due the global economic downturn and credit crunch.
Figures from the Pension Protection Fund show that in August, the amount of defined benefit pension schemes in deficit is believed to have increased by over £10 billion to £80.1 billion.
Marc Hommel, pensions partner for PricewaterhouseCoopers, said that schemes are facing the triple pressure of declining equity values, lower income from dividends and increasingly cash-strapped employers.
He added that no matter how much additional funding companies have agreed, the pension problem keeps coming back to bite.
Robert Graves, product development manager Rowanmoor Pensions, said that for people a long way off retirement, market turbulence could be seen as an advantage as it gives them ample time to invest.
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