The projected annual retirement income of typical defined contribution (DC) pension investors has decreased since 1 May, according to research from Aon Consulting.
The Aon DC Index follows the projected retirement income of individuals at different ages who contribute 10% of a £25,000 salary to a DC arrangement and have an existing fund (valued as at September 2007) of £15,000 for age 30 and £150,000 for ages 55 and above.
The projected annual retirement income of typical DC pension investors at age 30 is down £500 to £19,808 since last month, down £1,041 to £10,977 for age 60, and down £833 to £8,054 for age 65.
Richard Strachan, principal at Aon Consulting, said: “The drop in annual retirement income is a bitter blow for retirees.
“This sudden depletion to annual income as a result of stock market losses only highlights the fact that anyone with a DC pension should have an active interest in the stock market. It also reminds us we all have a stake in the bigger picture.”
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