18 February 2009
An urgent investigation is being launched into cash funds used
to shelter pension savers from the stockmarket. The investigation
by the Association of British Insurers (ABI) comes amid growing
concern that savers thought their money was safely tucked away in
bank and building society accounts is actually being gambled on
toxic mortgages.
The ABI will review what these 'safe haven' funds should be
allowed to invest in. It is reacting to concerns that monies are in
fact invested in bundles of debt, which has plummeted in value
during the credit crunch. More than £38 billion is tied up in
these funds, which are used by those savers approaching retirement.
They move their money into cash funds so they won't be hit by any
last minute falls in the stockmarket hitting their pensions.
