Pension incomes have fallen by 14% compared with the start of the year due to market turmoil.
Those who have pension incomes bought from retirement savings have seen a significant drop in their share and annuity rates. This means that a 65 year old with a £100,000 pension pot would buy a retirement income that was £926 lower today than at the beginning of the year.
The research from Hargreaves Lansdown found that the recent market crash is having a detrimental effect on UK personal pensions.
Since the beginning of the year a personal pension pot has fallen to £91,840 and the annuity income has fallen from £6,497 to £5,571 according to figures from Hargreaves Landsown.
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ISAs have also been hit by the market fall. ISAs linked with shares will now be worth significantly less as the value of savings has fallen by 12.2%.
According to a price comparison website, a stocks and shares ISA worth £10,000 at the beginning of the year is now valued at £8,778.
Those who have money saved in personal pension plans who want to cash them in to buy an annual pension are suffering from the market fall.
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There are also a growing number of people who donít have any pension savings at all. A quarter of over 55s have less than £500 in savings, further research from Avia found.
The typical monthly income for UK over 55 year olds has fallen from £1,1294 in June to £1,216 in September.
This is the lowest monthly income since February 2010, when over 55s had £1,250 to spend.
The number of over 55 year olds in debt is increasing, with a lack of savings or a decreasing pension pot 73% of them are concerned about the rising cost of living.
“The over-55s have seen their finances deteriorate over the last quarter as people struggle to keep up with the rising cost of living on a relatively fixed income. Said Clive Bolton, ëat retirement’ director at Aviva.
ìThat almost a quarter of this age group have less than £500 in savings and 40% save nothing each month is a clear indication that this age group is struggling financially.î
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