Only one in three UK individuals are putting cash into their company or personal pension, new research indicates.
A new survey from HSBC finds 16% of people do not join or pay into a company pension scheme, as they intend to rely on the state system upon retirement. And as many as a quarter of individuals in the North West intend to rely on the state for their pension provision.
Moreover, just under half of people questioned wrongly believe only working individuals are able to contribute to a pension, with 59% mistakenly believing it is not possible to pay into a pension scheme on behalf of someone else.
Surprisingly, 28% of London workers are not currently making any retirement provisions.
Head of life and pensions at HSBC Bank, Harpal Karlcut says individuals not working or receiving an income still receive tax relief on stakeholder pension contributions of up to £3,600 a year, irrespective of who pays it for them.
He says: “But, our research suggests that an alarmingly low number of people appear to be aware of this.”
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