The Hot Button Questions:- Money, Banks, & the Economy Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Hot Button Questions:- Money, Banks, & the Economy

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: maceng2 who wrote (387)	8/21/2003 9:36:04 AM
From: maceng2	Read Replies (1) of 1417

Workers 'delay retirement as pension values fall' ananova.com Millions of older workers are having to delay their retirement after seeing the value of their pensions slashed by stock market falls. One in four people aged over 50 said they would now retire later than they had planned two years ago, as a result of the decline in equities, according to consultants Watson Wyatt. Just under half of the 4,500 workers the group spoke to said they had seen the value of their savings fall by a lot during the past five years, and 20% said they had declined a little. Only 11% said their savings had remained largely the same, while 20% said they had increased during the period. The research also found that those who had seen the biggest drop in the value of their savings were most likely to reduce the level of funds they held in shares, with women more likely to reduce their equity holdings than men. The Association of British Insurers has warned that Britons need to save £27 billion a year more than they are if they are to have a comfortable retirement. The savings gap has been made worse by low interest rates and a 40% fall in the level of the FTSE 100, which has hit the value of many people's pension funds. Workers have also been affected by companies closing final salary pension schemes and replacing them with less generous defined contribution ones, under which firms only guarantee how much they will pay into a fund and not what it will be worth on retirement. Research carried out by Close Wealth Management estimates that up to 900,000 people have seen their final salary schemes close and have been offered defined contribution ones in their place. It claims this will have cost them around £1.6 billion in extra pension contributions, as many firms have also reduced the amount of money they pay into the new schemes to an average of 7.41%, compared with 14.83% for final salary pensions.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next