“So much focus is put on property as an individual’s main asset so it may be a big surprise for those fortunate enough to have a DB pension that it is worth more,” Mr Cooper said.
Pension values have been boosted over recent months, pushed up by a fall in long term government bond yields. The value of pensions is set to rise further, as the end of February figure represents the pre-lockdown total.
The fluctuating value of final salary schemes only has an impact on savers if they decide to transfer the pension, at this point a cash value is realised.
Values have more than doubled since the 2008 financial crisis, while property has also soared. However, this growth is unlikely to follow the same steep trajectory over the next decade because government bond yield cannot drop much lower, Mr Cooper said.
The high pension values should not be a reason for savers to transfer into a more flexible “defined contribution” scheme to access the cash, he warned.
Household finances will be squeezed during the pandemic, but that is no reason to give up the guaranteed income of a final salary pension, he said.
“Given the value of pensions and how much easier they are to access in a locked-down world, than property, people could look to them for cash. So, it is so important that this valuable asset is fully understood and not hastily cashed-in.”
By transferring your pension you get more flexible access but it means that your money is invested in markets and therefore is vulnerable to fluctuations. Final salary schemes on the other hand, pay a guaranteed, inflation-proofed income for life.
The Pension Regulator has warned of an increase in s attempting to coax savers into a transfer. In response, it has asked pension trustees to send a letter to those considering making a transfer during the pandemic, urging them to reconsider as it may not be in their best interest. British victims of pension scams lose an average of £155,000, according to a study by APJ Solicitors.
Scammers have already taken the economic uncertainty of coronavirus to prey on vulnerable people. Action Fraud, the national police reporting agency, has seen a 400pc increase in scams linked to the virus in March.