Murphy Wealth

“workers on median salaries stand to lose approximately £163,000 from their final pension pots due to the automatic de-risking built into so-called lifestyle pension funds.”

“For higher earners, the damage is considerably worse, with potential losses exceeding £400,000.”

“A worker earning the UK median salary and paying in the minimum auto-enrolment contributions, roughly £132.80 per month, adjusted for three per cent annual wage inflation, would accumulate close to £…”

“Should that growth rate drop to two per cent for the last ten years, reflecting the typical performance of bonds and cash, the final pot shrinks to just £232,500.”

“Remaining fully invested would generate a pot approaching £1million, whereas the reduced final-decade returns would cut that figure nearly in half, to around £558,000.”