UK defined contribution pensions pots have lost a third of their value in the last year.
The value of defined contribution pension funds have fallen from £552 billion to £395 billion.
Research by Aon Consulting shows over the last 12 months members have paid £6.7 billion into schemes – but the falls on the world’s stock markets have reduced the size of funds by £157 billion.
Since September alone funds have dropped by £75 billion.
For some workers the reduction in their pension pots could result in having to delay retirement, however, Aon maintains time is on the side of most members.
Helen Dowsey, at Aon’s benefit solutions division, said: “It may appear a double blow to workers that not only are they facing more of a struggle to make ends meet, but the economic turmoil is also seemingly eating into the money they have been putting aside for retirement.
“However, most workers will have the fortune of time on their side as their retirement will be many years away, enough time to weather the current storm.”
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