Compulsion may be the only way to ensure the stakeholder target market saves enough to have a comfor...
Compulsion may be the only way to ensure the stakeholder target market saves enough to have a comfortable retirement, according to research carried out by AXA Sun Life.
The group's report shows that although the majority of people surveyed believed they would receive a retirement income of 60% of National Average earnings, only one in six had actually made the sufficient provision.
The study, based on consumer research among a nationally representative sample of adults earning over £10,000 per year, found one in five were not saving regularly for their retirement.
Nearly a third will have to rely on some form of State benefit in retirement.
At the same time nearly two thirds of the sample felt confident about their financial well being in retirement, some hoping that an inheritance or windfall will help them through their later years.
Meanwhile, two out of five concede that they will have to work beyond retirement age.
AXA Sun Life believes part of the problem in establishing stakeholder pensions will be its delivery.
Steve Muir, AXA Sun Life marketing manager, said setting up arrangements with large groups, such as employers and unions, will help provide advice to individuals.
This method could be the best way of ensuring individuals signed up to stakeholder schemes in large numbers.
However, he stressed there would still be some who did not take up the scheme.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation