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Your pension is doomed. Sort of.

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The Guardian reports on research from Aon Consulting which has found that the value of British workers’ pension pots has dropped by a third over the past year, thanks to the tumbling stock market. In fact, this story is all over the headlines today – which is hardly surprising because it’s a pretty good story – billions of pounds slashed from the pensions of poor downtrodden workers, people having to work longer to top up the difference, scary stuff indeed.

Butis it really that big a deal? In reality stock markets fluctuate pretty wildly over the short term, but even when you take into account events like the great depression, world wars and 9/11, they almost always bounce back within a few years. The economic events of the past twelve months have been extremely gruesome, but unless we’re really looking at the complete and total collapse of global capitalism (which is unlikely, really) the chances are strong that stock market related investments such as pensions will recover their value sooner or later. It’s  a long game, and these ups and downs are all part of the fun.

  1. Rob Lewis says:

    And if you haven’t started a pension, if you do have some spare money each month now is a great time to start investing.