Pension pot £2.9bn smaller in 2009

| March 17, 2009 | 0 Comments
Pension pot £2.9bn smaller in 2009<br />

Brits retiring this year will receive £884 less per year compared to people who retired in 2008, research by Prudential has discovered.

There is a total shortfall of £2.9 billion for the 3.25 million pensioners retiring in 2009, compared to those who retired last year, the Prudential found.

This means the average pension will drop to £17,779 per year, compared to the average of £18,663 in 2008.

One in ten of those surveyed by Prudential expects to have a pension of under £10,000 per year.

As the credit crunch worsens, many pensioners fear that they will be unable to meet their needs using their pension and savings.

Six in ten (61%) of those polled said they are doubtful they will have enough money to enjoy a comfortable retirement.

Just 47% said they feel well prepared financially for when they give up work.

Keith Haggart, Prudential’s director of lifetime mortgages, said: “The global economic recession is relentless and indiscriminate in its impact and it was only a matter of time before we began to see British pensioners bear the brunt.”

He added: “Although the results of our survey make unsettling reading, there are ways for pensioners to maximise their incomes during these difficult times.

“Drawing on some or all of the assets saved throughout their working lives, including releasing value from property through equity release schemes, can boost annual incomes without having a detrimental impact on quality of life or forcing pensioners to downsize or embark on a fire sale of their possessions and assets.”

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