Stock-linked pensions 'should be viewed long-term'
British consumers whose pension funds are linked to the stock market should consider the long-term prospects of their investments, it has been suggested.
Amid fears of the impact of recent stock market fluctuations, Joanne Segars, chief executive of the National Association of Pension Funds (NAPF), has urged people whose retirement funds are linked to the markets not to be too concerned.
Ms Segars, whose organisation represents pension funds that account for around one fifth of investments on the London Stock Exchange, has urged the NAPF's members not to dwell on "short-term" changes to market conditions.
"Pension funds are long-term investors and pension funds will set their funding strategies in accordance with their long term liabilities, not short-term market moves," she said.
"There is no reason to think that the stock market falls of the last few days will have a significant impact on pension provision."
A report from the NAPF last month concluded that pension scheme members in the UK are keen to see the relevant regulatory burden lightened through government action.
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