UK Pension fund's coffers have been diminished

The sum of �60bn has been wiped off the value of British pension funds in the year to March, new figures reveal.

Tumbling stock markets have eroded more than 18% of the funds' value last year, in the worst performance since 1974, according to researchers Russell/Mellon CAPS.

And there was no-let up in the pain being inflicted on struggling UK pension funds during the first three months of 2003.

Funds lost �9bn of their value during this period.

Pensions crisis

It is further bad news for the UK's ailing pension funds, which are now experiencing their third consecutive year of losses.

Falling stock markets have wreaked havoc on the work and private pensions, causing growing anxiety among workers about their prospects in retirement.

European and UK shares were the worst performers, with indices falling 7.7% and 7.2% respectively, in the first three months of 2003.

However, funds which were invested in cash, bonds, and property fared much better.

International bonds were the best performers, returning 5% to funds.

But overall the gains were not enough to bring any funds out of negative territory.