- Wednesday, 31 March 2010People retiring this year are considerably more negative than they have been in the past when it comes to expectations regarding the amount of money their pension will be worth. Less money could mean a need for more
debt management plans.
That is according to new research conducted for Prudential.
It is the third consecutive year that the expected average value of pensions has fallen and a £3.5 billion pensions shortfall is now anticipated.
Pensioners retiring this year believe they will receive £1,270 a year less than those who entered retirement in 2009 and more than £2,150 less than those who took their pension in 2008.
Already tight budgets could be stretched to breaking point and leave many pensioners in need of
debt management plans.
Almost one fifth of pensioners expect to receive £10,000 or less.
Andy Brown, director of investment funds at Prudential, said that retirees had adjusted their expectations as a result of the economic turmoil of the last couple of years.
"The recession has clearly had a major impact on peoples' expectations of their pensions," he said.
"Putting money into a pension or other savings, and starting sooner rather than later, is the only real way of guaranteeing a decent income in retirement."
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