For the first time since 2001/2, Britons saved more into stocks and shares ISAs than personal pensions last tax year, new figures have revealed.
AJ Bell says that data from the Office for National Statistics released yesterday showed that £14.28 billion was saved into personal pensions (excluding stakeholder pensions) in the 2010/11 tax year, compared to £15.8 billion saved into stocks and shares ISAs in the same tax year.
This compares with £12.5 billion being subscribed to investment ISAs and £14.4 billion contributed to personal pensions in 2009/10.
The decline in pension savings has been blamed on the complexity of the products, compared with the relative ease of paying and saving into an ISA account.
AJ Bell's Billy Mackay said the results were proof of 'how dangerous complexity can be for pension saving', adding that the current situation is a 'ticking timebomb for the UK .
Richard Eagling, Editor of Investment Life and Pensions Moneyfacts, said the figures ' reflect both the phenomenal rise of ISAs and the lack of confidence in personal pensions'.
"The figures should provide a wake-up call for the Government ahead of the forthcoming Budget that the constant uncertainty surrounding pension rule changes is not conducive to encouraging pension saving," he added.
"For many people, ISAs are becoming a more attractive option for saving for retirement, simply because they are easy to understand and individuals have the comfort of knowing that any money invested can be easily accessed."
Learn about your pension options
For help with a Self Invested Personal Pension or a pension quote call TQ Invest: 0800 294 7203
Looking for a pension to help you save for your retirement? TQ Invest can help.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.