The ABI has outlined five strategies that could help close the £27bn savings gap. Mary Francis, d...
The ABI has outlined five strategies that could help close the £27bn savings gap.
Mary Francis, director general of the ABI, suggested reducing rules on selling simpler products as well as ensuring that employers encourage employee saving.
The savings gap between the amount actually saved and what is necessary to provide a sufficient income in retirement was found to be most significant among lower and middle income families by Oliver, Wyman & Company, undertaking independent economic analysis for the ABI.
Francis said the Sandler review and product providers could work together to help narrow the gap in five ways.
She added that people need more information about state provision for retirement and how to add to it without fear of it being clawed back in taxes.
A further recommendation was that people need to get basic information about how to save and where to go for more detailed advice.
Francis also called for a more open debate on whether people will ever save enough for themselves voluntarily without stronger incentives or compulsion.
Oliver, Wyman & Company found that those aged 35 to 45 earning less than £9,500 are the least well prepared for retirement, with a 22% gap between what they are saving and what is needed to secure an adequate level of income at retirement.
Carl McNicholas, director at Oliver Wyman & Company, said increasing access to research has the biggest impact on individuals in encouraging them to save. It added that depolarisation would do little to improve the situation.
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