Britons head towards pension shortfall - Annuities - News - Moneyfacts


Britons head towards pension shortfall

Britons head towards pension shortfall

Category: Annuities

Updated: 27/10/2011
First Published: 31/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Britons planning to retire in 2010 expect to get substantially less money than those who retired in 2009 and 2008.

People retiring this year expect to be £1,270 worse off than people who gave up work in 2009, with expected income falling for the third year running, according to research conducted by Prudential.

In total, UK adults intent on retiring this year expect to receive £3.49 billion less in their pensions compared to those who did so last year.

The retirees of 2010 expect average annual incomes of £16,509, seven per cent less (£17,759) than in 2009 and 11.5 per cent less (£18,663) than in 2008.

"The recession has clearly had a major impact on peoples' expectations of their pensions," commented Andy Brown, director investment funds at Prudential.

"I think what we're seeing is the emergence of pragmatism following the credit crunch with people perhaps being more realistic about the anticipated size of their pensions, in the same way that many homeowners are now taking a more balanced view of the value of property."

The figures also show that many people planning to retire this year are sceptical that their pensions and savings income will provide them with sufficient income to enjoy a comfortable retirement.

Some 61 per cent said they were doubtful that they would have enough money when they left work.

Almost one in five (18 per cent) of people retiring this year expect to receive an income of less than £10,000 a year from their pensions and investments.

Find the best pension for you - compare pensions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Secondary annuity market scrapped

The Government is cancelling plans for a secondary annuity market, citing concerns about consumer protection. Given there were fears that many could be ripped off – and that it wouldn’t be right for most – the decision has been largely welcomed.

2016 ILP Moneyfacts award winners announced

The winners of the 2016 Investment Life & Pensions Moneyfacts Awards were announced last night at a glittering ceremony held at the Lancaster London Hotel, amid much expectation and excitement.

2016: the worst ever year for annuity income

Tomorrow marks Pensions Awareness Day (PAD), yet our latest research doesn’t bode well for the sector – at least not for those seeking an annuity, with the data showing that annuity rates are on track for their biggest ever annual fall.