Prudential pensions warning

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Prudential pensions warning

Wed 30th Jan 2008

People retiring in 2008 will be financially significantly worse off than the average UK worker, it has been suggested.

Research carried out by Prudential found that this year's retirees will have a typical annual income of £18,663 – nearly £5,000 less than the earnings of a full-time worker on a median salary.

Gary Shaughnessy, managing director of Prudential Retail Life and Pensions, highlighted the need for people to plan for their financial futures as those retiring now will have "considerably less money" to survive on than typical British adults.

And the future looks less than rosy for those approaching retirement, he suggested, as fewer people nowadays benefit from final salary occupational pensions when they retire.

"It is absolutely critical that people seek professional independent financial advice when planning retirement," Mr Shaughnessy said.

Callcredit research published last year found that around a sixth of over-55s could not say how much money they owed.

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