Bail-Outs Bite Into Your Pension ; Crunch Poses a Major Threat to Millions of Uk Retirement Plans

Summary

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PENSION savings have been hit by tumbling stock markets over the past month. And there are concerns that after last week's losses and the banking bail-out, returns will be depressed further.

Pension funds have enjoyed substantial dividends from investing in banks and one effect of the bail-out will be to reduce this dividend flow. Any bank taking up the injection of Government capital announced last week will have to set aside a large slice of profits to pay back the State.

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Extract

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Bail-Outs Bite Into Your Pension ; Crunch Poses a Major Threat to Millions of Uk Retirement Plans

The UK Shareholders' Association says: 'People will suffer a major cut in their pension benefits if the dividend income to pension funds is restricted.' The exact impact of the financial crisis depends on what type of pension you have and h...

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