Pension pots 'rebound in value'

Pension funds have revived along with higher share prices

The value of assets in employees' defined-contribution (DC) pension funds rebounded in July due to rising share prices, the consultants Aon have said.

The pension experts put the combined value of DC pension schemes at £451bn, up by £31bn, or nearly 7%, from June.

This left the combined pension funds worth just £1bn more than they were in September 2008.

Aon said the value of DC funds were very vulnerable to the volatility of stock markets and other investments.

"These figures look promising as we return to asset figures roughly at the same value as they were a year ago," said Helen Dowsey, of Aon Consulting.

"Someone retiring at the end of July may have a significantly higher projected retirement income than someone retiring a month before.

"These volatile conditions highlight the need for workers to pre-plan for their pension, and understand and regularly review their investments, whose value can change dramatically in a short space of time," she added.