Pensioners set to lose retirement income within 20 years

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Pensioner inflation could erode entire monthly income within two decades of retirement, according to Standard Life.

The provider warns those with a pension pot of £80,000 buying a level annuity, will spend their whole monthly income on basic living costs, such as food and fuel within 20 years of retirement. Standard Life’s research, which used Office for National Statistics data and Government inflation figures, also found income could be swallowed up sooner in retirement if non-essential spending is factored in and combined with rising costs. Andrew Tully, senior pensions policy manager at Standard Life, says pensioners with a fixed income could lose as much as half of their spending power within a d...

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