It is time to be prepared and not to panic. If you are formally retired or likely to do so in the next few years, then some caution with your finances are warranted.
Pension funds have historically delivered dividends upwards of six percent. These returns are unlikely to be delivered in 2012. Consequently, the payouts from your pension fund could be trimmed back. Particularly worrying are the cases of pension funds already in financial strife.
The case of the Fiji National Provident Fund (FNPF) is instructive on this count. FNPF is slipping into insolvency (i.e. where the value of current liabilities exceeds the value of assets).