Global pensions lose $5 trillion in 2008: study

[Joanne98]

LONDON (Reuters) - Global pension fund assets in the 11 major pension markets fell by $5 trillion in 2008 hit by volatile markets, a Watson Wyatt (WW.N) report said on Monday.

The study said that over 2008, global pension assets fell to $20 trillion from $25 trillion, a fall of 19 percent which took assets below 2005 levels.

Another reason for the decrease was lower government bond yields, which pushed pension liabilities further up.

Pension schemes calculate their liabilities against AA-rated corporate bond yields --if yields fall, liabilities rise and vice versa.

Watson Wyatt said it had selected government bond yields to facilitate liability comparisons across the 11 countries.

All countries in 2008 saw significant negative growth in pension assets, the study noted, except for Germany, which was protected by its high allocation to bonds.

http://www.reuters.com/article/ousiv/idUSTRE50P23620090126

[Lasher]

1. Apparently this does not include 401(k), Roth, and IRA retirement accounts.

These types of retirement accounts are a significant part of the picture in the US.