Prudential provides pensions warning

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Prudential provides pensions warning

Wed 22nd Aug 2007

The pensions crisis in the UK is set to get worse, a panel led by Prudential has claimed.

Three major issues were flagged up by the Prudential Retirement Income Panel of Experts - the decline in occupational salaries, the use of housing equity to pay debts and help children on to the property ladder and lack of savings among the debt-ridden younger generation.

It called for the industry and government to make products easier to understand and financial advice more available, as well as looking at models from other countries and inflation-proofing investments.

Panel host Gary Shaughnessy, managing director of Prudential Life and Pensions, said more education on retirement planning is needed.

"The average male aged 60 retiring today will live to 85, but their expectation for how long they are going to live is 75. The average pension pot at retirement is £25,000. It is stunningly low," he said.

This month, Credit Action claimed it is likely the majority of dormant bank accounts belong to people who are elderly.

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