People 'cutting back on pensions'

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A number of people in the UK are failing to save enough for retirement, according to an expert.

Julie Mulvanny, head of business development of individual pensions at Prudential, said that issues related to the credit crunch have led some consumers to reduce the amount they are putting away for later life.

"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 explained.

She added that the decision of many people to rely on their homes for retirement through equity release and downsizing has also been affected, due to falls in property equity and increases in the cost of living.

The comments on the issue of retirement provision have come after a report by Life Trust Insurance found that increasing longevity is impacting on the cost of retirement.

It was also revealed that the cost of retirement for an individual currently stands at £326,700.

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