Recession 'caused drop in pension fund assets'

Friday, February 26th 2010

Britons due to take their retirement could see a drop in their pension fund assets, due to the recession.

The warning comes from head of communications at AWD Chase de Vere Patrick Connolly, who said the decrease was down to the poor financial climate.

"Market falls have a significant impact on personal pension arrangements", he said.

Risky investments could also have worsened the problem for those approaching retirement, Mr Conolly claimed.

It could mean that this group either has to work longer or accept lower funds when they retire, he added.

The Office for National Statistics published figures in 2008 that appear to support this view.

Self-administered pension fund assets were valued at £928 billion in 2008, which was a drop from the £1,093 billion noted in 2007.

Mr Connolly advises that safer investments such as cash or fixed interest accounts may be a wiser move than equities.

"Those who have incurred significant losses shortly before retirement often have a stark choice," he warned.