Recession dents UK pension funds

More than a third of UK consumers believe their pension savings have been depleted by the recession, new research by Aviva has discovered.

Thirty five per cent of the 1,200 people polled - all of whom are nearing retirement - said their retirement funds have fallen in value because of the credit crunch.

Over one in ten (12%) said so much has been lost from their pension fund that they have been forced to look for additional ways to supplement their retirement income.

Nearly a quarter (23%) said they have cut their outgoings in the last year so they could put more aside towards their pension.

The rising cost of living is also worrying those getting close to pension age, with 32% citing this as a concern.

One in twenty (5%) said they will be relying on part-time work to pay the bills once they reach retirement age.

“Understandably, the recession has forced people to think about their retirement income,” said Brian Brussell, director of pensions at UK Life, Aviva.

“Many have realised that they may not have sufficient funds to live through their final years in the comfort they have grown accustomed to,” he added.

“We urge people to begin saving as early as possible for their retirement to make sure they do not have to make major lifestyle changes later in life.”

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