Just under half of the UK workforce is not contributing to any form of pension scheme, says new res...
Just under half of the UK workforce is not contributing to any form of pension scheme, says new research by the Consumers' Association.
Concerns about the chance of future generations gaining a decent standard of living at retirement are also heightened as this evidence also shows those that of those consumers who are failing to contribute to a pension scheme, almost two thirds of men (64%) want to retire earlier than sixty five and over a third of women (36%) would like to retire before the age of sixty.
Consumers said they also thought they would need an average income of three-quarters (75%) their current salary in order to enjoy a comfortable retirement.
Yet the main reasons given by those not contributing to a pension scheme are:
* they cannot afford to, because of other financial commitments, such as a mortgage (24%)
* they think they are too young / it is too soon to think about it (19%)
* it had never occurred to them (18%)
Commenting on the survey findings Mick McAteer, Senior Policy Adviser, says the fshocking findings show consumers are not saving enough to give themselves a decent pension at retirement, even if they work until the age of 65.
"These new findings show that the Government has an enormous challenge ahead of it if consumers are to enjoy a financially comfortable future. With an increasing shift away from state provision, the Government needs to ensure that consumers are taking steps to meeting their own future financial needs. Inaction will leave thousands of consumers receiving pensions that fall vastly short of expectations.
"The Government needs to address the reasons behind consumers failing to save. A recent Consumers' Association survey found that many consumers are not saving because the available savings products are too confusing and they don't know where to find unbiased advice about the products on offer1 Consumers' Association's idea for a National Financial Advice Network would provide consumers access to impartial advice. Coupled with better quality products this would improve confidence in the financial services industry and encourage consumers to save more for their futures."
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