The US government budget row can seriously damage pensions savings for British elderly, a former head of the Saga Group, which provides insurance and financial services to the over-50s in Britain has warned.
œThe implications for people™s pensions are serious. Investment markets are unprecedentedly risky now and because investments affect the value of pensions, it means pensions are now unprecedentedly risky, too,” former Saga director Ros Altmann said.
The warning comes as the US government is struggling against default after the Republican-dominated House of Representatives passed a budget that will delay the Democrat president™s key healthcare reforms for one year.
The Democrat-led Senate rejected the bill last Monday and the two sides remain at odds over a budget that could thwart the government shutdown.
The shutdown has already affected the jobs of some 800,000 people with millions more left without paychecks.
The government will run out of cash on October 17 unless it can get its desired budget passed and get the congressional approval for a rise in the government™s borrowing limit.
œWe may see a sell-off in the bonds of countries that are heavily indebted, and we are one of them. œPension funds have lots of money in gilts (UK Government bonds) and may experience losses,” Ros Altmann said.
Britain has £275.3 billion worth of investments in the US.
Copyright: Press TV