PPI Claim News - 7/12/2010
Loan Rates: Low interest rates mean poor pension returns
Although low interest rates are good for the economy they are failing to help pension pots grow, it has been claimed.
Robin Ellison, partner at international law firm Pinsent Masons, advised consumers to save 20 times their desired income for their retirement, although he did admit this may be an issue as the majority of consumers currently have very little disposable income.
"The problem for people retiring in the last couple of years is that annuity rates have fallen, because interest rates are low," he said.
"Low interest rates, while they help the economy generally, are very unhelpful for people who are retiring and coming up to retirement, especially if there is high inflation, as there is."
Meanwhile, new research by wealth management firm Heartwood revealed that the UK's wealthiest ten per cent of households will need to spend £920,000 to maintain their standard of living over a 20-year retirement.
Posted by Charles Baker
Charles is a reputed financial analyst with almost decades of experience under his belt 
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