Worst stock market start of the CENTURY: Fears for pensions as FTSE 100 loses £40BILLION
BRITAIN’s top stock market lost billions of pounds today, prompting fears over invested pension savings.
By LANA CLEMENTS
Express.co.uk
Mon, Jan 4, 2016
The FTSE 100 plunged by more than two percent in the opening hours of trading, amid worries over China’s economy, wiping up to £36billion off its value and slashing the value of British pension pots.
Stock markets in China had to be shut earlier in the day after falling by as much as seven per cent, as investors panicked over the country’s colossal economy slowing.
And now the worry has spread to London where a number of FTSE 100 companies are heavily exposed to China’s economy.
Pension funds are typically invested in the blue-chip index, meaning savers could suffer the effects of sell-offs.
Those who are not expecting to take their pension for a number of years should sit tight, as losses are usually recouped over the longer term.
But pensioners who are drawing from their pension while it’s still invested, through income drawdown plans or through lump sums of cash, risk damaging income prospects for the rest of their retirement.
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