What impact could the news about Lehman Brothers have on pension schemes?
Stock markets around the world have fallen at the news of Lehman Brothers seeking bankruptcy protection and the announcement that Merrill Lynch is being taken over by Bank of America. In the UK £8bn has been wiped off the value of the 200 largest defined benefit schemes – the fifth biggest fall this year. It’s likely to result in more final salary schemes being closed to new members. Q: Will savers be affected in any way? A: Savers could be one of the few winners from today’s news. Mortgage lenders will be more reliant on using money from savers to fund their lending. In consequence the current high returns on offer to savers are unlikely to disappear any time soon, with banks and building societies coming under increasing pressure to get savers’ money through their door. Q: I’m worried about how safe my savings are. What would happen if a UK bank went bankrupt? A: If a UK bank collapsed and savers lost money as a result the Financial Services Compensation Scheme (FSCS) would step in t
