Most Britons face 60 percent loss in retirement income

According to a study conducted by London's Chatham House think-tank, 60 % of middle class Britons is most likely to face squeezed income at the time of their retirement.

The earning of 35 million people from 15 million households ranges between 18,000 pounds to 44,000 pounds, and the income as well as eminence of life is set to face a negative rebound during retirement compared to the lowest and highest 20 % earners.

The reason of such speculation is the shifting of defined benefit (DB) pension schemes to defined contribution (DC) schemes, which does not come with an assurance of pre-determined retirement income.

This may further worsen if the already disturbed economy sinks even more, this will put a lot of pressure upon the middle class Britons.

An overwhelming effect will be visible in the pensioner's life by way of low interest rates, low property price, inflation, higher ratio of defined benefit (DB) pension schemes to defined contribution (DC) schemes etc.

To counter such debacle to happen the study also suggested a number of government policies like assured minimum annuity rates, corresponding pension contribution schemes, availability of sound financial advices etc. These policies will come handy in diminishing the falling pattern of retirement income.