Retirement Blues: Current Financial Crisis Forces Billions to be Pulled From Pension Plans
For everyone who has a pension plan, last year was one of the worst financial years. The crisis sucked more that $ 5 trillion from retirement plans that are company-oriented. This affected markets in the United States, as well as in Japan, the UK and The Netherlands. Due to the plunging stock market, there was a decline of 19% among worldwide assets. The only country that saw an increase in value was Germany.
United States pension plans were hit hard. These plans account for more than 60% of all global pension assets. The crisis ruled in company pension funds being under-funded by over $ 400 billion at the end of the year in 2008. Retirement accounts in the US were declined by $ 2 trillion.
These massive losses have forced individuals planning to retire to adjust their retirement savings plans as well as their IRA & retirement plan investing. In many cases, people have…