The assets in employees’ defined-contribution (DC) pension funds value has rebounded in July, consultants Aon state, due to rising share prices.
The combined value of DC pension schemes has been put at £451bn, up by 7% (£31 bn) from June by Aon.
This meant the combined pensions funds are worth £1bn more that last September. The value of DC funds are affected by the volatile stock markets and other investments Aon suggest.
Helen Dowsey, of Aon Consulting indicated: “These figures look promising as we return to asset figures roughly at the same value as they were a year ago.”
“Someone retiring at the end of July may have a significantly higher projected retirement income than someone retiring a month before.
“These volatile conditions highlight the need for workers to pre-plan for their pension, and understand and regularly review their investments, whose value can change dramatically in a short space of time.”