Fall in pensioner income may prompt need for debt help
Fall in pensioner income may prompt need for debt help
- Wednesday, 10 February 2010Debt help may be needed by pensioners facing an uphill battle in trying to fund a comfortable retirement.
According to a new survey by Investment Life & Pensions Moneyfacts, the average personal pension income has dropped by 60 per cent over the last ten years.
Those who paid £100 gross per month into a balanced managed fund over the past 20 years would have accumulated a pension fund of just £40,749, compared with £103,914 if they had retired ten years ago, according to the study.
What's more, pension income has fallen from £8,998 per annum in January 2000 to just £2,542 in January 2010, a drop of nearly 72 per cent.
Survey editor Richard Eagling said the figures served as a "powerful reminder".
"It is clear from such alarming statistics that if the pensioners of tomorrow are to enjoy the same level of retirement as their predecessors, much has to change and quickly."
Meanwhile, the proportion of retirees releasing equity to free up income has increased from 11 to 35 per cent since 2008 according to the UK Equity Release Market Monitor.

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