A former government pensions minister is warning of “massive losses” for pensioners retiring this year, with big providers telling older customers their funds have plummeted by 20% or more over the past 12 months.
The losses come despite the UK’s FTSE 100 stock market index hitting record highs in recent weeks. What has emerged is that many workers reaching retirement this year were effectively locked into government bonds that fell dramatically in value as the Bank of England raised interest rates and Liz Truss’s ill-fated premiership rocked the bond markets.
