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Pension pot values 'fell in last ten years'

By Tom Farley, Wed 10 Feb 2010 - Published in Pensions

The value of the average personal pension pot has fallen during the past decade, it has been claimed.

Research carried out by Moneyfacts found that the average retirement pot has fallen by 60 per cent in the last ten years.

The study showed that a person who paid £100 a year into a balanced managed fund for 20 years would have £40,749 if they retired today, compared to £103,914 a decade ago.

Richard Eagling, editor of Investment Life & Pensions Moneyfacts said: "Given that the last decade presided over a dotcom crash and a credit crisis, it is hardly surprising that pension funds have performed so poorly."

He also noted that if savers do not start to increase their pension contributions and pay more attention to the returns they are generating, further falls in value will be seen over the coming decade.

Recently, the National Association of Pension Funds revealed that its upcoming conference in Edinburgh will examine the challenges facing the pension industry after the recession.