Stock market volatility has caused more than £120 billion to be wiped from the value of UK pensions in the past month, according to figures from the National Association of Pension Funds (NAPF).
The figures take into account the fall in value of defined benefit (DB) and defined contribution (DC) workplace pension schemes, as well as personal pensions.
The losses represent a drop of between 6 and 7%, or £2,000, for every pension fund in the UK.
Last month saw the FTSE 100 index drop below the 5000 level for the first time since July last year.
Joanne Segars, chief executive of the NAPF, said: “While we have estimated that the total value of assets in pension schemes has been reduced by 6-7% over the last month, funds are long-term investments and not easily unsettled by short-term volatility.
“On top of this, they are constantly monitoring market performance and spreading their investments across many asset classes. As we can see from this week’s stock market performance, prices can rise as well as fall.”
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