View more on these topics

DC pensions plunge 25%

Defined-contribution pension assets have lost 25 per cent of their value, or £140bn, since the start of the credit crunch, according to Aon Consulting.

The firm’s new research tool, the Aon DC pension tracker, shows the value of DC pension assets stood at £550bn in the beginning of the crisis in September 2007 and 16 months on at the end of January 2009 the value was slashed to £410bn.

The tracker aims to provide a realistic gauge of how the UK’s DC pension pot, into which over 3.7 million UK workers pay every month, is faring. It tracks the change in size of the British DC pension market and calculates the expected pension income at retirement for people of different ages.

The tool shows that a 60-year-old who is contributing 10 per cent of a £25,000 salary and expecting to retire in five years has seen their total projected pension fall by 36 per cent, meaning they can now expect to receive £10,900 annually compared with £17,100 forecast in September 2007.

The impact on younger workers is not so severe, with a 30-year-old employee over the same period has seen their projected pension fall 8.5 per cent.

Principal Helen Dowsey says: “Over the last year, DC pension scheme savers have been hit hard by the falls in equity markets and people need to take an active role in reviewing their pensions. We urge employers and employees to maintain the long-term view that pensions are the best way to save for retirement.”


FTSE buoyed by M&S

The FTSE 100 opened 20 points higher today at 3,763 as equities rebounded from yesterday’s sell off.

DA confidential

In the next two months, the FSA will set its adviser fees for 2009/10, prompting many directly authorised mortgage brokers to re-evaluate whether to continue to go it alone or sign up to a network.

Recovery position

Rathbones boasts one of the oldest brands in financial services, originally founded in 1742 as a Liverpool timber and shipping merchant.

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm