This year's retirees £3.5bn worse off than last year
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This year’s retirees will be almost £3.5bn worse off than people who retired in 2009, according to Prudential.
Research from the insurer found UK adults retiring this year expect to be £1,270 a year worse off than people who gave up work in 2009 as expected income fell for the third year running.
Those planning to retire in 2010 expect to receive £3.49bn less in their pensions compared to those who retired in 2009.
People planning to retire this year are expecting average annual incomes of £16,509 compared to £17,779 in 2009 and £18,663 in 2008.
Expected incomes are 7 per cent lower than in 2009 and 11.5 per cent down on 2008, the study shows.
The Prudential survey shows that 18 per cent of people retiring in 2010 expect to receive an income of less than £10,000 a year from their pensions and investments, up from 11 per cent in 2009 and 9 per cent in 2008.
Director of investment funds Andy Brown says the recession has impacted heavily on pension savings and suggests people are becoming increasingly realistic about how much money they will be able to retire on.
Brown says: “The recession has clearly had a major impact on peoples’ expectations of their pensions. What we are seeing is the emergence of pragmatism following the credit crunch with people perhaps being more realistic about the anticipated size of their pensions, in the same way that many homeowners are now taking a more balanced view of the value of their property.
“The fact that people retiring this year expect to receive less in their pensions than people who have retired in the past two years should come as a reminder that putting money into a pension or other savings, and starting sooner rather than later, is the only real way of guaranteeing a decent income in retirement.”
Many people planning to retire in 2010 are sceptical that their pensions and any savings would provide them with sufficient income to enjoy a comfortable retirement.
While 39 per cent said their pension and savings would give them a decent retirement income, 61 per cent were doubtful that they would have enough money to enjoy a comfortable life in retirement.
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Readers' comments (1)
Incompetent Regulators Awards Team | 31 Mar 2010 3:29 pm
Did anyone watch the 3 Chancellors last Monday eve having a stand off? Well Darling is the biggest idiot of them all. When asked the question re public sector pensions may have to be cut he said "Yes we have to look at public and private sector pensions". WHAT PLANET IS HE ON. They've already decimeted the private sector and left the public sector alone for fear of losing votes.
He also mentioned that they shouldn't cut public sector workers and front line services too quickly as this will affect the economic growth!!!!!!!!!! Is he also stupid? HELLO can you hear me......IT'S THE PRIVATE SECTOR PROFITS THAT KEEPS THE PUBLIC SECTOR IN WORK and pensions. Simple economics man..............
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