Britons are trailing behind the worldwide average when it comes to pension savings, warns a new report.
Datamonitor's Financial Services Consumer Insights (FSCI) Survey reveals 72% of Britons do not hold any pension savings, higher than the global average of 69%.
Conducted in May and June, the survey asked 9,000 consumers across 15 countries about their attitude and behaviour towards saving.
It found the UK in particular has a lost generation of pension savers, with almost 90% of 18-24 year olds not currently contributing to a pension policy.
Meanwhile, the outlook for those approaching retirement is almost as bleak, with 68% of 50 to 64 year-olds in the UK not holding a pension.
Annabel Gorringe, life and pensions lead analyst with Datamonitor, says the group on the ‘home straight' to retirement should recognise the risks associated with most asset classes given the current volatility.
She says consumers have historically relied on their property as their pension with around three quarters of almost ten million UK pensioners' wealth tied up in housing equity. However, individuals are now re-thinking their strategy as the housing bubble has burst.
Gorringe also believes individuals are realising they cannot rely on the buckling state system as the recession bites into the Government's finances.
"The difficulties of saving for retirement seem to have been woefully underestimated by both policymakers and individuals themselves," she says.
"The need to engage consumers with private pension provision is more necessary than ever before."
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