U.K. defined contribution plan assets declined by £140 billion ($200 billion), or 25%, in the past 17 months, according to an Aon Consulting report today.
Aons DC Pension Tracker said the value of British DC assets currently stands at £410 billion from £550 billion in September 2007.
According to the report, the large asset loss was caused by the decline in global equity markets, with the impact hitting older workers more than younger ones.
Over the last year, DC pension scheme savers have been hit hard by the falls in equity markets, and people need to take an active role in reviewing their pensions, Helen Dowsey, principal at Aon Consulting, said in a news release. For some workers, not making active investment decisions could mean they lose out on up to a third of the value of their pension.