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Fewer People Saving for Retirement
(19/08/2006)
Fewer people
are saving enough for their retirement, according to research
published by Scottish Widows.
The report finds that in the last year the
percentage of people saving adequately for their old age fell
from 55% to 46%. At the same time, the proportion failing to
make any form of pension saving rose from 17% to 28%. The
insurer commissioned market research with questions being put to
5,806 people.
In May the
government published its plan to reform the state pension
system, following three years of work by Lord Turner's Pensions
Commission. But Iain Naismith, of Scottish Widows, said:
"Although it is too early to tell it does appear, regrettably,
that the noise surrounding pensions could have led many to put
their retirement savings on hold while they wait and see what
happens with the much-publicised government reforms.
"There also
appears to be a significant decrease in confidence that final
salary schemes will provide a good income in retirement."
Among the
principal changes being proposed by the government are a gradual
rise in the state pension age and the creation of a new system
of additional personal pension savings.
Another
factor that Scottish Widows pointed to for undermining the
public's enthusiasm for pension saving was the continued closure
of private sector final salary pension schemes. This contributed
to a fall - from 41% to 35% - in the proportion of people who
believe they will be able to rely on such a scheme.
With this
went a rise - from 12% to 23% - in those who have no idea where
their main income will come from once they have retired. However
the research was not entirely gloomy. It found that there has
been a big rise in ordinary savings, with the average amount of
money accumulated, excluding property and pensions, rising from
£16,600 to £24,300 per person. As for raising the current state
retirement age of 65, only 34% said they would be happy for this
to happen.
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