Credit Crunch

The recent collapse in global stock markets has hurt pension funds and savings. Shares in the UK have lost a third of their value in the last year. Recently the National Association for Pension Funds, which represents employers' pension schemes, forecast that a quarter of major private sector firms expect to close their final salary pension schemes to existing members in the next few years.

Final salary schemes, which offer guaranteed benefits to members, are facing pressure from plunging stock markets, falling interest rates and growing life expectancy. Many companies have already closed their schemes to new members, saying they are too expensive to finance. The latest estimate of total company pension deficits is nearly £200bn.

The Bank of England has cut interest rates to 1%

Interest rates slashed

Millions have also seen the interest on their cash deposits eroded as the Bank of England has cut interest rates from 5% in October to a record low of 1% in February. Paul Broadhead of the Building Societies Association told the BBC that savers were being "punished", arguing that the move could hinder the funds available to societies to lend as mortgages.

The average rate available on an instant access bank or building society savings account is already below 1%.

Building societies have complained that any further cuts in bank rate will be particularly bad for savers, as rates on savings and deposit accounts have tumbled along with mortgage rates.

BBC Radio 4's business reporter, Adam Shaw.

Pensions and savings roadshow

Radio 4 Today programme’s business reporter Adam Shaw will be hosting a pensions and savings road show at the Sun Pavilion in Valley Gardens on Cornwall Road in Harrogate, on Saturday 21st February.

Members of the public who turn up between 10am and 4pm will be seen by one of a team of Independent Financial Advisors. The IFAs will provide information about savings and pensions and can help people to understand any relevant paper work.

The event will be filmed for use in a Panorama programme about pension and savings next month. For more information visit the Panorama website.