Falling pensions

StevieJ

The fall in return from a 20 year £100 a month pension contribution is a staggering 72% over the last 10 years :eek:

Habitual Fool readers will know that the Noughties proved to be a lost decade for stock-market investors. Alas, the blue-chip FTSE 100 index fell by some 20% from 2000 to 2009. Even after adding dividends into the mix, the Footsie rose by a feeble 9% over ten years.
Of course, plunging equities have been a big headache for those investing for retirement. Indeed, pension investors face an uphill battle to fund a comfortable retirement, according to Investment Life & Pensions Moneyfacts.

http://uk.finance.yahoo.com/news/a-decade-of-plunging-pensions-foolcouk-fb14c360e829.html

EdInvestor

It's rare that you have have such a range of problems occurring simultaneously:

Poor stockmarket performance
Towards the end of the decade, a global recession bringing poor commercial property market ,gilt market performance and low interest rates to top up the collapse of stockmarkets
Collapsing annuity rates (see gilts)
Sudden discovery of increased longeveity (see collapsing annuity rates)or t

However those who waited rather than panicked will have seen some recovery in the past year.

dunstonh

Dont forget Labour Govt. The UK Stockmarket traditionally underperforms then.

However those who waited rather than panicked will have seen some recovery in the past year.

As well as those that rebalanced and diversified.

Also, the drops have been good news for those that are investing on a regular basis and have a long time to go.