The poor situation pension savers are currently faced with would be "even more desperate" if it wasn’t for the recent revival of the stock market, according to one industry expert.
A recently-published report from financial advice service, Moneyfacts has revealed that a recent revival in the stock market contributed to the 22.35 per cent average growth achieved by the UK’s pension funds last year.
However, despite the increase, the organisation said pension incomes have fallen by a "staggering" 60 per cent over the last ten years.
According to the report, a person paying £100 per month into a managed fund for 20 years would have savings of £40,749 if they were to retire now.
By way of contrast, a 20-year savings pot with the same monthly instalments, would have amassed £103,914 a decade ago.
Richard Eagling, editor of Investment Life and Pensions at Moneyfacts, said: "Given that the last decade presided over a dotcom crash and a credit crisis, it is hardly surprising that pension funds have performed so poorly.
"However, unless individuals increase their contributions and take greater interest in the returns generated, the next decade could prove just as disappointing."
Worries about the poor returns of pension schemes could lead to a rise in the popularity of additional retirement fund schemes like equity release.
These policies can provide property owners with cash taken from the value of their homes.
