The unprecedented fall in the US stock market this week continues to highlight the difficulty that the world’s financial markets are facing.  The ‘credit crunch’ has been with us for over 1 year now and there is still no clear sign that the problems facing the world’s banks are closer to being resolved.

For investors and homeowners this has resulted in a year of falling house prices and falling stockmarkets.  There are many commentators who predict that the difficulties in both these markets will continue, not just for months, but possibly for years to come.

Many  people will have no option but to ride out this current storm, but for others they may not have that chance.  If you are planning to retire in the next few years you will have undoubtedly suffered over the last year and for many people there is simply not enough time to recover those losses.  These problems, although financially painful to the current generation close to retirement, could have dramatic implications for the future, as younger people are discouraged to save for their retirements.  We could all being paying for the fallout from the current crisis for many years to come.