Pensioners hoping to solve their debt problems
with generous retirement payouts
Pensioners hoping to solve their debt problems are increasingly disappointing, a financial advice company has warned.
A worrying new report suggests that the value of pension investment returns is plummeting.
According to Moneyfacts, an individual with a personal pension who retires today may be as much as 50 per cent worse off than someone who made the same contributions but reached retirement ten years ago.
The report will not be welcome news to pensioners hoping to clear their debt with a lump sum payout and then spend their retirement debt free.
"The fact remains that today's pensioners are facing a longer retirement with pension pots half the size of those fortunate enough to have retired a decade ago," said Richard Eagling, editor of investment, life and pensions at Moneyfacts.
"These latest figures should serve as a powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision," he warned.
Recent figures from Sesame suggested that one in four pensioners are no longer expecting to clear their debt before they die.