Pension Planners

Survey reveals half of Brits don’t have a pension

31
May0

A recent survey commissioned by the BBC indicates that around half of adults in the United Kingdom aged between 20 and 60 are not making contributions towards a pension.

The survey of 1,358 people by GfK NOP – a leading market research and consumer insight agency, suggests the situation was worst among under 30s, with around 1 in 3 – 36% putting anything aside towards pension schemes or savings accounts.

Many young people cannot afford to make contributions, with a number trading it with paying off debts such as credit cards or loans.

The survey showed that 45 percent of participants aged between 41 and 60 are not contributing towards a pension.

There are several reasons for this, which include the large rate of unemployment in the current climate, as well as many women that never joined a scheme due to leaving full time employment at pregnancy.

A number of the younger people among those that took part in the survey said that their reasoning behind not having set up a pension had been due to either not being well informed enough, or because they felt that they still had a long time before now and retirement so would purse it at a later date.

While 36% of respondents aged 30 or below currently have a pension, around 50% said that they were confident they could have a comfortable retirement.

Chief executive Ed Gardner of UK retirement and savings at pension and insurance firm Metlife, said young people should not presume that this would be the case. The days of generous final salary pension schemes are becoming less frequently available, which is likely to cause this new generation of pension planners to rely on defined contribution pension schemes, which tend to provide lower returns.

“Unfortunately the tide has turned and younger people face even more challenges in saving for their retirement” said Mr Gardner.

People may have to begin asking themselves what they will need in order to retire by 65, based on another 25 odd years to cater for.

“What you will find is that many people are currently saving nowhere near enough,” Mr Gardner said.