Pensions could be 'depleted'

By Tom Farley, Thu 25 Sep 2008 - Published in Pensions

Many people saving towards their pensions could find they have less put aside than they thought, an expert has claimed.

Des Hamilton, technical director at the Pensions Advisory Service, pointed out that many people building their pensions could have been hit by the recent decline of the stock market, as this is where their funds are invested.

"The usual convention is a few years out from retirement to start moving your savings out of volatile stock market related investments into cash or bonds, something that is less volatile," he explained.

However, Mr Hamilton said people approaching retirement who decided to keep their investments in stocks could find their pension pots are "severely depleted".

Research from the Office for National Statistics published this month found 27 per cent of UK adults believe they are saving enough to maintain their current standard of living when they reach retirement.

In addition, 38 per cent said they want to contribute more to their pensions, with just under half hoping to contribute a lot more to the funds.

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