UK. ‘Pensioner poverty’ alarm as older people raid pension pots
Older people face the prospect of “pensioner poverty” due to the rising cost of living and the falling value of the stock market, it has been claimed.
Figures from online investment platform Interactive Investor show its customers withdrew a quarter more from their private pensions in January as the cost of energy, food and petrol went up.
The figures have prompted concern that pensioners will not have enough money to see them through retirement.
In January, the average withdrawal from an Interactive Investor pension was £1,944, up 25% on the average for the same month in previous years. In February, the average was £1,910, up 7% on the same month in previous years.
Former pensions minister and campaigner Ros Altmann says these higher withdrawals are a “danger signal for the future”, particularly if they are taking their retirement savings early. “As the cost of basic essentials, such as food and heating have soared, people need higher incomes to cover their bills. Pay increases are far lower than current 30-year record high inflation rates, and people may be searching for other ways to make ends meet,” she says.
Read more @The Guardian
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