Contributions into personal pensions has fallen from £5.2 billion in 2008 to £3.91 billion in 2009. The Association of British Insurers (ABI) has blamed the fall on the recession, stating that those who would normally be saving for their retirement have had to use current income to live off. As well as the recession, some have argued that perceived high charges from insurance companies coupled with poorly performing investments has made savers skeptical about the whole process.
Last month saw pension annuity rates hit a record low, with rates falling to 50% of the level they were 15 years ago. Pension guru Dr Ros Altmann recently said that confidence in pensions generally had reached “an all-time low”. He added that pension savings have been one hardest hit during the credit crunch and that retirees will be disappointed with their reitrement income if the situations continues.
