Reliance on state pensions still hugely common - Pensions - News - Moneyfacts

News

Reliance on state pensions still hugely common

Reliance on state pensions still hugely common

Category: Pensions

Updated: 17/12/2012
First Published: 14/03/2012

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 It is now over 6 months old so the content may be out of date.

Despite the continuing problems with retirement savings, the majority of Britons are still relying on their state pension.

And worryingly, just 4% of people expect auto-enrolment pension savings to form part of their retirement income, suggesting that many workers expect to opt-out of the scheme when it begins.

This may rise, however, when the initiative is more heavily publicised as the launch date nears.

Research by unbiased.co.uk has found that two thirds (65%) of people in the UK continue to look to the state pension to provide them with retirement funds.

More encouragingly, almost half (47%) of Britons said they would also utilise a private pension as part of their retirement plans, followed by a quarter (25%) who named ISAs as their retirement income source.

The figures suggest that the messages about the importance of saving for retirement from an early age is getting through, with less than half (44%) of under 35s predicting they will have to rely on the state pension.

This compares with 62% of 35-54 year-olds and 84% of Britain's over 55s.

"Planning for retirement is one of the most important things we can do to ensure we are financially secure in the long-term and as our research shows, there is a multitude of retirement savings options out there,"

Karen Barrett, chief executive at unbiased.co.uk comments.

"But not every option is right for everyone and it is important to realise that simply relying on the state to provide for you is not going to be enough.

"We all have to take ownership of our own financial future and plan for our income in retirement accordingly, whether it is through just putting money into a savings account or actively contributing to a private pension."

Find the best pension for you -Compare pensions.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Pretend to be a time traveller day: Are you ready?

Today marks international ‘pretend to be a time traveller day’, a perfect occasion to look at what our lives might look like in 50 years’ time. Are you prepared for 2066?

Two out of five pensioners worry about money

Nearly two out of five pensioners fear that they’ll run out of money in retirement because they do not have enough guaranteed income, according to a new study by MetLife.

Savers more worried about looks than pension

When you think of getting older, what’s the first thing that comes to mind? For many, it’ll be fears about their looks – but they should really be concerned about their financial situation.
 
Close