State pensions offer "very little income"
A financial services company has been speaking about the difficulties faced by people saving for retirement.
Prudential's head of business development for individual pensions, Julie Mulvanny, said many people are cutting back on pensions contributions and nest egg savings, despite state pensions not offering a great deal for retirement.
"The average pension pot in the UK is about £25,000 and the annuity pots we have the average in them is about £25,000, which is very little income over the period of retirement," she said.
Ms Mulvanny added that many people previously relied on property for their retirement, by downsizing or releasing equity from their homes, but with the housing market in decline this is not a viable option.
Increased mortgages and household bills are pushing pensions savings to the bottom of lists of priorities, she said.
According to research from Prudential, over a third (37 per cent) of working-age adults in the UK are losing sleep due to worries about their retirement finances.
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