The average pension saver has lost £2,750 a year from their future income in retirement over the last year, research finds.
The Alexander Forbes National Pension Index - which tracks projected retirement income benchmarked at the year 2000 - fell from 67.4 to 58.9 in the 12 months to March. This drop equates to a loss of £2,750 a year compared with last year and £13,000 compared with the turn of the millennium. The average 30 year old in 2000 could have expected contributions of about 12% of salary to be enough to provide two-thirds of income in retirement at age 65, but that same saver would now be expecting an income just 39% of final salary, down from 45% in March 2011. The consultant added that prop...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes