For me, the recent market shakeup has highlighted the growing pension apartheid in this country. There is a clear division between…
1) The pension haves (final salary pensions usually public sector) and
2) The have nots (everyone else on defined benefit/ personal pension).
I won’t go into the politics of it all here, but following the recent turmoil, George Osbourne might find he is in a stronger negotiating position going into the next round of public sector pension negotiations.
As companies and governments close off their final salary schemes, there will be more people shunted onto defined contribution type plans which depend not on the number of years of your service/ final salary, but on the performance of your investments in the long run.