Pension planning 'becoming more complex'

Monday, 29 November 2010 12:00

People are currently having a tough time when it comes to planning their pension and the situation is expected to get worse before it improves, according to one firm.

Wealth management company Equilibrium stated that individuals and families on retirement fund plans that are not index-linked are being adversely affected by annuity rates which have plummeted to record levels.

Managing partner at the organisation Colin Lawson said quantitative easing could result in inflation increasing in the coming years, in addition to driving down pension rates.

He added that those retiring today may face the triple threat of a decade of poor investment returns, low annuity rates and rising inflation.

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