Poor investments pensioners lost 4.6bn after banking crisis

Pensioners have lost £4.6billion a year of vital income in the aftermath of the banking crisis, alarming figures show.

Research for the Mail found couples aged over 65 earn, on average, a third less from their savings and investments than five years ago.

In early 2008, pensioner couples who relied on interest from nest eggs earned an average £1,863 a year.

Falling interest rates and volatile stock markets reduced this to £1,219 last year, figures from financial advice firm Key Retirement Solutions show — a 34 per cent drop.

This works out at £4.6billion of lost income across the country.

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It was hoped a low Bank of England base rate of 0.5 per cent would encourage lending and borrowing.

But it has so far failed to revive the country's economic fortunes.