Pensioners` personal finances `hit by stock market crashes`

14 October 2008

The personal finances of UK pensioners may be affected by the recent stock market crashes, it has been suggested.

According to figures cited in the Daily Mail, private pension holders may have lost out to the tune of £20,000 each due to the falls, potentially meaning more retirees could be forced to consider loans and remortgaging as a means of financing their post-work years.

The publication states that a total of £150 billion was wiped out by the stock market falls seen in recent weeks.

It adds that the 100,000 workers who are about to give up work will be the worst hit, having lost as much as a fifth of their retirement income.

"Stock market falls are hitting pension savings hard and rising government borrowing means everyone is facing higher debts," stated shadow chancellor George Osborne.

Meanwhile, Gordan Lishman, director of Age Concern, recently warned that consumers in the UK are not saving sufficiently for retirement.

According to the expert, high-profile pension schemes going bust in recent years have put people off making savings for their post-work years.

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider.