Pension savings taking a back seat

Category: Pensions
Date: 7/15/2010

The over-50s have been forced to reduce their retirement savings by almost £18bn over the last year, despite growing concerns over their retirement prospects.

One in five of those approaching retirement have decreased their retirement savings by an average of £324 a month, according to LV=, as they attempt to deal with the financial pressures they are feeling now.

The vast majority have also missed out on the recovery seen in the stock markets over the past year or so, with fewer than one in 12 of Britain's non-retired over-50s having increased their pension savings in that time.

Over a third of over-50s are banking on a recovery in the economy to fund a comfortable retirement, while more than a quarter said they will be forced to delay giving up work.

"Britain's over-50s have already seen their pension pots damaged by the economic crisis, and now many appear to be diverting still more money away from retirement saving to deal with immediate pressures," said Ray Chinn, LV= head of pensions.

"We urge those already close to retirement not to give up on saving at such a crucial time."

Given that many pension pots are not what they should be, it is vital that those about to retire make the very most of them when buying an annuity.

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