Tough economic conditions are taking a heavy toll on the savings
of people in the UK over the age of 50, reveals life insurer
LV=’s annual State of Retirement Report.
“Britain’s over-50s have already
seen their pension pots damaged by the economic crisis, and now
many appear to be diverting still more money away from retirement
saving to deal with immediate pressures,” said Ray Chinn, the
insurer’s head of pensions.
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Specifically, LV= found that 21% of
those have decreased their retirement savings by an average of £324
a month ($490), or £3,800 a year, more than double the £137 average
reduction in retirement savings made by 20% of over-50s in
2009.
LV= also found that women
approaching retirement appear to be feeling the pinch most, with
23% cutting their monthly retirement savings by an average of £372,
or £4,464 a year. By comparison, 19% of men approaching have
reduced their retirement savings by an average of £265 a month, or
£3,180 a year.
Unsurprisingly, people have become
more uncertain about their retirement prospects. Among people over
50, 37% are pinning their hopes of a comfortable retirement on a
“substantial economic recovery” in the UK. This reliance rises to
46% of non-retired people over 60.
