Credit crunch 'will eat into retirement savings'

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Credit crunch 'will eat into retirement savings'

Mon 16th Mar 2009

Research conducted recently by Prudential has revealed that many people in the UK are expecting their pension provisions to be smaller than anticipated.

According to the pensions provider, the 3.25 million UK adults who plan to retire in 2009 expect to receive £2.87 billion less than those who planned to retire in 2008.

Prudential's survey revealed that, because of the credit crunch's effect on pension funds, the average expected income from pensions for those retiring this year is £17,779 compared to £18,663 last year - a difference of £884.

Keith Haggart, director of lifetime mortgages at Prudential, 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."

The Alliance Trust conducted research recently which showed that the credit crunch is hitting UK pensioners particularly hard because they face a higher rate of inflation than the general population.

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