UK pension pot values slumped again in July

THE VALUE of the nation’s pensions has continued to tumble in the past month, with the average 30-year-old losing £518 from their annual pension income in the last four weeks alone according to recent figures.

The average 65-year-old is left with £7,666 a year, according to Aon Consulting’s monthly pension tracker, which is half the amount thought necessary for an adequate standard of living. The losses highlight the shortfall in personal funding for the average Briton at a time when the default pension age faces abolition.

“Though we have seen some improvement to economic circumstances in the past six months, pension pots are in only marginally better shape than this time last year and due to the volatility in stock market activity, pension pots shrank once again during the last month,” said Richard Strachan of Aon Consulting.

The index tracks individuals who pay in 10 per cent of a £25,000 salary into a pension pot, and found that a 30-year-old’s annual pension income had shrunk by 2.6 per cent to just over £19,000 in the space of a month. A 60-year-old’s income fell by 3.3 per cent to just over £10,000.