People retiring today face a pension income almost half (46%) as low than could have been expected had they retired immediately before the financial crash in 2007, research by Fidelity has found.
The results found a person who was set to retire in 2017 would have a retirement income of £6,607 from an average annuity compared to £12,193 for a person who retired in 2007. Fidelity said the squeeze can be attributed to the combined effect of a real-terms fall in wages, lower market returns and greatly reduced returns on annuities that pay retirement income in the decade since the credit crunch. The asset manager conducted a hypothetical experiment, modelling the outcomes of someone retiring today who in 2007 still had 10 years of work and saving ahead of them. It then compared th...
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