Sep 1 2008
People in the UK putting money into pension schemes risk losing out as a result of delays in transferring funds into retirement income, it has been suggested.
According to figures produced by Virgin Money, pension savers could be missing out on up to £10,000 in this way.
The company stated that pensioners could be hit by both the loss from payouts not beginning on time and from the possibility of annuity rates dropping during a delay in sorting out paperwork.
Reportedly, a three-month delay would result in a loss of monthly income of £1,935 for the average man and £1,800 for the average woman.
Meanwhile, Fair Investment recently suggested that people considering their options for retirement savings may benefit from equity release schemes, whereby they release money from their property to supplement a pension or savings.
Spokesperson Sharon Bratley said: "Pensioners are finding it tough and releasing equity from property may be the only way to survive through retirement for some."
