UK pension trustees could see hundreds of millions of pounds wiped off their pension funds following BP’s oil spill in the Gulf of Mexico, it has been suggested.
The news could inspire a number of people approaching retirement age to seek equity release advice in order to secure their retirement finances.
BP’s share prices have plummeted since the news of the disaster was announced.
This could have an adverse effect on pension schemes as around 1.5 per cent of the equity in the UK’s pension funds is tied into BP shares, experts have estimated.
Laith Khalaf, a pensions analyst at Hargreaves Lansdown, told the Press Association: "The poor performance of a big stock like BP can have a disproportionate impact on funds.
"There have also been other falls in the stock market as well. If the market had been doing well in recent months, it might not have been such a big issue."
Homeowners who are concerned how crashes in the stock market could have an effect on their pension funds can find out how much cash their property could generate by contacting Key Retirement Solutions for equity release advice.
Posted by Christian O’Leary
