"Share carnage adds £120bn to the value of your pensions"

From The Daily Mail:

"More than £120billion has been added to the potential value of the next generation’s pensions in the last month following the stock market turmoil.

The National Association of Pension Funds released figures last night showing the true benefit to future savers of the crisis that has shifted share prices closer to their true value. The savings – worth between 6 and 7 per cent of money paid into pension funds in future – equate to a discount for future savers equivalent to £2,000 for every man, woman and child in Britain, or £4,800 for every family.

But the benefits will be far higher for many who have not yet contributed into work and personal pensions. The figures cover the increase in value of defined benefit schemes, defined contribution pensions and personal pensions. They are based on the performance of all world stock markets between July 8 and August 8...

"Not even in the global financial crisis did we see such extraordinary buying opportunities," said Justin Gallagher, a trader at Royal Bank of Scotland.

Joanne Segars, chief executive of the National Association of Pension Funds, said: "Pension funds will be invested in a variety of assets. While we have estimated that the total value of assets in pension schemes has been reduced by 6-7 per cent over the last month, current and future savers should remember that what they are buying is the stream of future dividends and capital gains. Dividends are fairly steady over time, so current and future savers have just been offered a huge discount; and instead of being forced to subsidise the Baby Boomers' capital gains, today's savers will be able to realise those gains themselves when they retire."