Survey highlights retirement cash shortfall

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Survey highlights retirement cash shortfall

Tue 19th Sep 2006

Today's pensioners are facing a far less comfortable retirement than those who retired a decade ago, a new survey shows.

The Investment, Life & Pensions Moneyfacts report claims that those who reached their retirement ten years ago were 50 per cent better off than those who made the same pension contributions, but are only retiring now.

Despite the revival in the stock market over the course of the last three years, today's pensioners face a significantly lower return on their personal pension contributions, according to the Moneyfacts survey.

It notes that the recent stock market revival has saved many Britons from a situation that could have been "even more desperate".

However, those who have benefited from the upheaval should not become complacent, according to the report's editor, Richard Eagling.

He said: "The fact remains that today's pensioners are facing a longer retirement with pension pots half the size of those fortunate enough to have retired a decade ago."

Mr Eagling says the latest findings should be a "powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision".

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