Recession 'has not affected pension saving for most'

By Tom Farley, Thu 1 Jul 2010 - Published in Pensions

The recent recession will not have greatly affected most people's pension savings, an expert has argued.

Robin Ellison, a partner at Pinsent Masons, pointed out that most pension funds are invested over a period of 20 to 50 years, which means they are insulated to a degree from two or three years of economic difficulty.

"Although it is unpleasant, it shouldn't make that much of a difference," he commented.

However, Mr Ellison said that people who were hoping to retire in the next few years will have seen the value of their pension pot fall because of the recession.

The expert also claimed that low interest rates should be more worrying than the recession to pension savers, explaining: "That makes it very expensive to buy an annuity at retirement age."

Recent research from Scottish Widows found that the number of people who are saving an adequate amount of money into their pension has fallen by six per cent since last year.

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