Moneyfacts: Pensions fall by 60% in 10 years

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Moneyfacts: Pensions fall by 60% in 10 years

Wed 10th Feb 2010

Pension funds have fallen by as much as 60 per cent in the past decade, according to Moneyfacts.

A quarterly review into pension payouts by the financial advice company has found that the average pension pot is now 60 per cent smaller than it was ten years ago.

This means that a consumer paying in £100 a month into a balanced managed fund would have a pension worth £40, 749 if they retired this month.

However, for someone who paid in the same amount but retired ten years ago, their fund would be worth £103,914.

Richard Eagling, editor of Investment Life & Pensions at Moneyfacts, said that due to the crashes in dotcom trading and the recession it is not surprising that pensions have been hit so hard.

He warned that unless people increase the amount they are saving and keep an eye on how much their interest is earning them each month there could be more disappointed people in the future.

For consumers looking for a loan there is also bad news, as Moneynet also reported that interest rates are at a nine-year high.

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