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Not enough done to encourage saving for retirement

Not enough done to encourage saving for retirement

Category: Pensions

Updated: 25/08/2009
First Published: 25/08/2009

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 It is now over 6 months old so the content may be out of date.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 overwhelming majority of Britons believe the Government is failing in its role to encourage people to save money for retirement, a survey has found.

In fact, almost nine out of ten (87 per cent) respondents said they thought that not enough was being done to persuade people to build up a fair sized pension pot, figures from Hymans Robertson has revealed.

Those with household incomes £150,000 or over are the most critical, having been adversely affected because of changes made in April's Budget.

Seventy per cent of the public said they worried they are not putting enough away for their retirement. The trend is especially apparent amongst young people, with 83 per cent of 16 to 24 year olds said they felt this way, compared to a more modest 65 per cent of 55 and overs.

Sheffield is the city with the most anxiety about pensions in the UK, with less than 15 per cent of its residents confident they are saving enough. Residents in Brighton were the most confident, with 51 per cent happy with their savings for retirement.

Patrick Bloomfield, partner at Hymans Robertson said: "The recent Budget has made retirement saving, especially pensions, more complex and less attractive for many people, and whilst these measures might have been focused on the wealthy, they are having a knock-on effect on all workers.

"With an increasing number of companies shutting defined benefit pension schemes and property prices still low, it is crucial that the Government encourages people to look at a variety of ways to save money.

"Our survey results show that the Government has a great deal of work to do to encourage people to save for retirement. While we acknowledge that in the last decade of low interest rates Britons have become more accustomed to retail spending and property investment, the time has now come to make savings attractive and fashionable."

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