UK’s DC pension assets increase for third month in a row. Nine more months of similar stock market gains required to return pensions to 2007 levels.
New analysis by Aon Consulting shows that while Britain’s defined contribution (DC) pension assets have increased for the third month in a row, a further nine months of sustained market gains are still needed to restore pension assets to 2007 levels. For a great many people working in the latter stages of their careers, their projected annual retirement income levels are still significantly down compared to two years ago.
According to the Aon DC Pension Tracker, which measures the total asset value of UK workers’ DC pension accounts, their assets have risen three percent over the last month to a combined total of £430 billion. The improved position is due to the continued gains in global equity markets. The recent gains means the outlook continues to offer a glimmer of hope for future Britain’s pensioners, who have seen their retirement income battered by the financial crisis. However, losses since the start of the credit crunch are still far from being recouped, with a further 28 percent increase required to bring DC assets back to their combined value of £550 billion in September 2007.
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29 June 2009