Stock market turmoil and record low interest rates have left workers nearing retirement with private pensions worth substantially less than those who finished work three years ago, new figures show.
Overall pension incomes are now 30% lower than they were three years ago when the government began attempts to boost the economy through quantitative easing, according to accountants PricewaterhouseCoopers.
Peter McDonald, a partner in the pension practice at PwC, warned that those retiring this year would be left "between a rock and a hard place", forced to defer claiming a pension until the market picks up.
"Compared to only three years ago, a money purchase pension is now worth 30% less than it was," he told the Telegraph.
With stock market turmoil set to continue and this week's resumption of the Bank of England's quantitative easing programme, injecting another £75bn of new money into the economy, annuity payouts are set to shrink further.
The FTSE has fallen by about 15% since May, which has cut the value of many workers' private pensions schemes........read on