Credit crunch 'will cause retirement pensions shortfall'
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Prudential has conducted research which shows that many people are expecting the credit crunch to eat into the value of their retirement pensions, creating a shortfall.
The credit crunch has left many people in the UK predicting that they will receive less money than expected from their retirement pensions.Personal pension plan provider Prudential has conducted a survey which reveals that the 3.25 million adults who are expecting to retire this year are predicting that they will be £2.87 billion worse off that those who retired last year.
UK workers planning to draw their pensions in 2009 expect to get an average annual income of £17,779, which is £884 less than those retiring last year.
Keith Haggart, director of lifetime mortgages at Prudential, said: "The global economic recession is relentless and indiscriminate in its impact and it was only a matter of time before we began to see British pensioners bear the brunt."
Recent research by the Alliance Trust reveals that the credit crunch is also affecting pensioners' purchasing power as they are suffering from a higher rate of inflation than the rest of the population.
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