Private pensions burnt by annuity rates

Falling incomes, higher prices and less job security have all jolted UK private pensions. Actuarial specialist Mercer claims that a 50-year-old is now likely to receive £1,740 a year less than they might have expected back from 2009 projections thanks to slumping annuity prices.

The picture is likely to deteriorate further due to a drop in contribution levels, from 4.6% to 4.2% this year.