DC members lose £157bn

Falling underlying asset values and a decline in pension contributions by cash-strapped workers are thought to be the major reasons for the decline. Aon says the value of DC pensions stood at £522bn in October 2007, but has slumped by 28% to just £395bn over the past twelve months as the economy has entered a downturn. Since the market turmoil at the beginning of September, more than £75bn has disappeared from the UK’s DC pension funds. Aon’s research indicates workers paid in around £6.7bn in contributions in the twelve months to October 2008. The rapid fall in global stock markets has...