A
personal finance website has claimed that the amount of
pension likely to be bought by someone
investing for their
retirement has fallen by 72 per cent in the last ten
years.
Moneyfacts.com's quarterly review into pension payouts has
found that the average
pension pot is now significantly smaller than it was a decade
ago.
Richard Eagling, the website's editor of
investment life and
pensions, explained that the trend was caused by a fall in
annuity rates and the depressed state of
the stock market .
He added: The situation facing many pension savers would have
been even more desperate had it not been for the recent
stock market revival, which saw the average
pension fund grow by 22.35 per cent in 2009, the highest annual
return since 1999.
Meanwhile,
Standard Life recently launched a new
personal pension, which is targeted at young people, with an
advertising drive on a digital television station.
The Scottish firm is placing adverts on Dave TV as part of a £2
million campaign which focuses on people who have yet to consider
their financial future.
