Employees have suffered a loss of around a third of their defined contribution pension schemes in the past year due to the lows in the markets eating away at their savings.
Around £157 billion of defined contribution pension funds have been lost. This is obviously shocking but if a person isn’t close to retirement then there isn’t a need to panic too much as time is on their side. However the effects on people about to retire has been live changing. Many are finding it necessary to continue to work before taking their pension is a viable option.
A £4 billion drop for the largest UK final salary schemes occurred in August and has added to the pressure in the pension world.
One of the major reasons many are opting for a transfer to a QROPS is the ability it gives to take control of your pension. This can be achieved with a financial adviser or, if a structure is built in, the individual can manage their pension extremely easily. Having the ability to move your pension into other assets and investments is proving to be a major plus in these shaky times.
