Retirees ‘expect smaller pensions’

Those approaching retirement in 2009 are expecting to receive less money per year from their pensions compared to those who stopped working in 2008, a new survey has revealed.

The Prudential Class of 2009 retirement poll revealed that the expected annual pension from retirees this year is £17,779 – a drop from 2008’s figure of £18,663.

Furthermore, 61 per cent of those questioned by the firm said they feared they would not have enough to live off using their savings and pensions alone.

Director of Lifetime Mortgages at Prudential Keith Haggart suggested that pensioners need to consider how they can maximise their income.

“Rather than struggle through what should be some of the best years of their lives, anyone approaching retirement or who has recently retired should talk to a financial adviser,” he said.

Pensioners were recently described as “innocent victims” of the credit crunch by finance expert Dr Ros Altmann following the publication of a new report from the Institute of Fiscal Studies.

By Rosie Park

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