According to data from employee benefits and risk management firm Aon Consulting, despite predictions of growth for the economy, the value of the nation’s pensions continues to fall. It predicts that 65 year-olds will be left on a mere £7,666 a year, almost half the adequate standard of living (£14,400).
The Aon DC Index follows the projected retirement income of individuals at different ages who contribute 10% of a £25,000 salary to a defined-contribution (DC) pension arrangement and have an existing fund (valued as at September 2007) of £15,000 for age 30 and £150,000 for ages 55 and above.
Richard Strachan, senior consultant at Aon Consulting, commented: "Though we have seen some improvement to economic circumstances in the past six months, pension pots are in only marginally better shape than this time last year and due to the volatility in stock market activity, pension pots shrank once again during the last month."
Aon urges members to review pension investments in order to ensure an adequate income in retirement.
