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Pension saving low in priorities

Pension saving low in priorities

Category: Pensions

Updated: 18/12/2009
First Published: 20/11/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The reluctance of Briton's to take out a personal pension is leaving them at financial risk in later life, a new survey has revealed.

According to HSBC, only two per cent of people plan to take out a personal pension plan in the next year.

However, 17 per cent said they were likely to arrange travel insurance, while three per cent claimed they would take out dental insurance.

People's focus was also found to be predominantly on short term savings rather than long term.

One in five said they would invest their money in a savings account, with 11 per cent keen to invest in a cash ISA, five per cent in a high interest account and four per cent in cash savings.

Meanwhile, despite the recent rise in UK unemployment, only two per cent of people said they intend to protect their health or income.

"Our study reveals the lack of understanding people in the UK have around their long term retirement needs," said Ian Martin, Head of Retirement Businesses at HSBC Insurance UK.

"Many are more motivated by that sparkly smile or dream holiday than the retirement of their dreams and are less educated or aware when trying to plan for the long term.

"People should save for later life as early as possible and resist the temptation to put it off. With every year's delay the amount people will need to save from their income increases at an alarming rate."

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