Millions of pension fund investors in the UK are set to be hit hard by the financial impact of the BP oil spill. Most investors have a stake in BP as the oil company accounts for 1 of every 7 of dividend income which is paid out by all the companies in the FTSE 100 index of shares. This is not good news for those who have worked hard to save and invest.
BP's share price since the oil started gushing into the Gulf has fallen 40 percent which means that billions of pounds (that's billions) of pounds will have been cut from the value of UK investor's pension funds. Fifty-five billion has been taken off BP's market value.
The people most affected will be those who have money market funds as the size of their eventual pension will depend heavily on the performance of their investment portfolio.
Who will be the least affected? That would be the members of the BP pension plan as it is one of the few in the country which does not invest in BP shares.