Retirement income expected to fall in 2012
The survey found that individuals retiring this year can expect to receive an average retirement income of £15,500 - £3,100 less than those who retired in 2008.
Experts have attributed the fall to the recent chaos on the stock market and shrinking annuity rates, which dropped by 8% in 2011.
Vince Smith-Hughes of the Prudential said: ‘The current economic climate has created the perfect storm for people in the run-up to retirement.
‘The impact of the credit crunch, banking crisis, recession, and concerns over the eurozone, has been reflected in the fact that expected retirement income levels have hit a five-year-low.’
It is thought that one in five pensioners expect to live on £10,000 a year or less. This figure includes the state pension and income from private and company pension schemes.
Ros Altmann, director general of over-50s group Saga, said: ‘This latest report shows the terrible and permanent damage this temporary boost to the economy has done to pensioners.
'Savers retiring today are being locked into a lower pension for life because of the drop in annuity rates’.
For advice on pensions and investments, contact our Wealth Management team on 01254 679131
PM+M News
Following on from the success of our extensive Autumn/Winter seminar programme, we are please to announce our Spring/Summer 2012 programme. Our free seminars and networking events cater for a large variety of businesses, specialist sectors and individuals in the local area.
PM+M has been shortlisted in the Lancashire Business View Red Rose Awards 2012.
