Pension programs are on the rocks in the UK, with experts warning that the current figures might prompt employers to close pension programs or to make them less beneficial for their workers. The deficit in the private sector pension funds has grown by £80billion. This is due to the stock market plunge and the collapsing returns people have gotten for government bonds.
Those on the verge of retirement are scrambling to figure out what to do, as the financial issues have recently wiped out as much as 20% of their pension payouts.
As Joanne Segars, the chief executive of the National Association of Pension Funds, has warned,
“Things are only likely to get worse when the latest round of quantitative easing feeds through. Stormy stock markets and weak investment returns have pushed a lot of pension funds deeper into the red. It is another pressure on final salary schemes in the private sector, and they are closing their doors to staff at an increasing rate.”
It’s definitely not the right time to be one of those retiring in the UK.