News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011
• May 2011
• April 2011
• March 2011

Newsletter

Stock market falls 'hurt pension funds'

By Tom Farley, Mon 1 Mar 2010 - Published in Pensions

Personal pension arrangements have been damaged by falls in share prices caused by the recession, it has been pointed out.

The Office for National Statistics recently showed that falls in the stock market led to billions being wiped off the value of self-administered pension fund assets.

Figures from the organisation revealed that the funds' assets stood at £1,093 billion in 2007 but dropped to £928 billion as stock markets started to suffer at the start of the recession.

Commenting on the statistics, Patrick Connolly, head of communications at AWD Chase de Vere, agreed that personal pensions have been harmed by the turmoil in the markets, adding that this is especially concerning for those approaching retirement.

"When approaching retirement, investors should reduce the risk profile of their holdings. This means moving out of equities and into safer investments such as fixed interest and, ultimately, cash," he added.

Mr Connolly also claimed that the secret to successful long-term investing is to hold a variety of assets to reduce the risk of them being affected by adverse economic conditions.