21 September 2006
People who have saved for a personal pension will receive only
half of the sum they would have been paid 10 years ago, according
to a survey by Moneyfacts.
The survey by Moneyfacts, the financial information website,
found that a man retiring at age 65 in 1996 who had paid £500
a year gross into a personal pension for 15 years would, on
average, have built up a with-profits pension fund worth
£25,840 or a unit-linked fund worth £19,709.
That same person retiring today would receive a with-profits
pension fund of only £12,306 or a unit-linked fund of
£11,696. This represents a 52 per cent fall in the average
with-profits pension payout and a 40 per cent drop in the average
unit-linked pension.
