Three things we learned this week

Retirement Planner's roundup of the top pensions stories this week.

Pensioners face 60% spending hit from inflation

Fixed income pensioners could see their spending power cut by 60% cent over a 20 year retirement because of the impact of inflation.

According to Prudential, inflation for retired people, dubbed ‘Silver RPI', is higher than the standard figure because pensioners spend more on goods and services such as food and fuel, which are subject to the highest rates of inflation.

The research from the insurer shows the average person retiring in 2011 expects an annual income of £16,600, but if that income remains fixed it will be worth just £6,700 in today's money in 20 years' time if inflation remains at its current level.

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Volatile markets slashing DC pension pots - Aon

Higher annuity rates and volatile market conditions have dented retirement prospects for UK workers over the last few months, suggests research from Aon Hewitt.

The outsourcing arm of Aon said younger people have been hit particularly hard from the toxic combination of higher annuity rates and tough economic conditions.

According to its index tracker - which shows projected retirement income for individuals with defined contribution (DC) pension schemes - a 30-year-old has seen his or her expected retirement income slashed by over £800, or 4%, over the past three months from £19,238 to £18,399 per annum.

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Mattioli Woods acquires HNW adviser in £8.7m deal

SIPP specialist and wealth manager Mattioli Woods has acquired TCF Global Independent Financial Services and its subsidiary, Kudos Independent Financial Services, in a deal worth up to £8.69m.

The deal will be satisfied partly in cash and partly through the issue of 462,572 new ordinary shares of 1p each in Mattioli Woods.

TCF is the holding company of Kudos, an employee benefits and wealth management business based in Aberdeen.

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