AT LEAST 16 people in south Hampshire have had their pension pay-out dreams shattered.

They face financial heartache in the run-up to retirement after a profitable foreign company wound up its British pension scheme.

South African wine exporter KWV, which owns UK distributor Edward Cavendish and Sons, told 29 members of Cavendish's final-salary scheme it will be closing down the fund at the end of this month.

It means that many of the workers, who were based at offices in Southampton and then Romsey, will see a fraction of their expected pay-out despite contributing for up to 25 years.

In effect 60 per cent of their pensions have been lost. Someone expecting to draw £10,000 a year would see that cut by £4,000.

Former Cavendish sales manager Bob Stopp, 54, said he would have drawn £20,000 a year at retirement, but that has now nose-dived to £8,000.

He said: "We knew the scheme would be closed to new members but remain deeply shocked to learn that KWV will not be honouring their pensions commitment."