Select Page

As European stock markets follow the turbulence in Asia and US trading, the BBC has asked for your questions about what is happening. Many of the questions the BBC received focused on the possible ramifications for ordinary people. Others wanted to know if it was likely the instability could bring about a crash.

How is this going to affect normal people?

Even if you don’t own shares or bonds directly, there is a good chance you own them as part of your pension. Twelve million workers in the UK are now members of defined contribution schemes. This means the value of their retirement income is directly dependent on the value of the shares their pension fund owns. But as long as you are not retiring in the very near future, this should not really affect you. In fact the shares your pension fund will now be buying will be cheaper, and will have a better chance of growing in value.

 

 

Original Article: http://www.bbc.co.uk/news/business-42963321

shares