Recession could leave pensioners needing debt management solutions
Recession could leave pensioners needing debt management solutions
- Friday, 26 February 2010The value of people's pension funds has fallen considerably as a result of the recession, and could leave many close to retirement needing
debt management solutions.
Figures from the Office for National Statistics reveal the value of self-administered pension fund assets dropped from £1,093 billion in 2007 to £928 billion in 2008, meaning many will have much less in their pension pots than they may have expected.
Those who have yet to pay off their mortgages and will soon be relying on a pension to fund their twilight years could find it particularly difficult to cope.
Independent financial advisor AWD Chase de Vere suggested that the fortunes of the stock markets have a significant impact on people's pensions.
Patrick Connolly, head of communications at the firm, said: "Those who have incurred significant losses shortly before retirement often have a stark choice between accepting a lower income in retirement or working for longer."
Earlier this month, it was revealed by unbiased.co.uk that February 20th marked Debt Freedom Day.
That means that the typical consumer earned just enough in the first 50 days of 2010 to pay off the interest on their debts this year.

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