- Despite their recent difficulties, final salary pensions still offer the best protection against market movements
- Other pensions will also have suffered from the bonds sell-off
- Different types of pensions come with different risks and levels of protection in worst-case scenario situations
Final salary pensions rarely make the news, which makes the headlines of the past few weeks, with all their talk of insolvency and cash crunches, all the more alarming.
When planning for retirement, a final salary (or defined benefit) pension is typically something people spend little time worrying about – your final benefits are guaranteed, and no one will blame you for thinking that's all you need to know.