Britons could be putting their pension pots at risk by not taking adequate steps to guard against the threat of inflation, it has been claimed.
Some three in five Britons are in this position, effectively compromising the level of income they will enjoy after reaching retirement, according to Hartford Life
The investment group cited this data, drawn from a YouGov poll, which specifically examined the pension provision being made by the current baby boomer generation who are approaching retirement age.
Michael Kalen, chief executive of Hartford Life, advocated certain types of pension as being able to counteract the "corrosive effect of inflation".
"Guaranteed drawdown pensions allow people to remain invested in equities and thus benefit from their potential upside, while at the same time providing a guarantee that protects the value of their pension in bear markets," he remarked.
Last year the government announced a major shake-up of the pension system after the Hutton report found several failings in current levels of provision.
The authority pledged to boost the basic level of financial support for Britons after reaching retirement, but also opted to raise the age at which one can apply to 68 to offset this.
Inflation warning over pensions
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Inflation warning over pensions
Tue, 10 Jul 2007
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