Pension income tumbles 37% since 2000

The consultant's National Pension Index, which charts projected retirement income, dropped 4.2 points to 63.2 over this period, down from a base of 100 in 2000. The index shows the average 40-year-old who has been contributing 12% of salary since 2000 could now expect an income at retirement of 43% of final salary. Alexander Forbes said this worker would need to up his contribution rate to 38% of salary to get back to the two-thirds replacement income predicted when he started saving. Alan Carey, principal consultant at Alexander Forbes, said: "The last six months have been dire fo...