70% relying on state pension
A recent survey conducted by Defaqto discovered that over 30% of people said that they were not saving for their retirement, while 70% confessed that they are relying on their state pension.
Richard Sheppard, head of pensions for AWD Chase de Vere, said pensions are not a priority and many are paying less attention to their long-term saving but are focused on financing new cars.
Mr Sheppard added that those who are coming to the end of their fixed-rate mortgages may not consider their retirement as they are focused on meeting the higher costs of borrowing. He added that it was a’ real concern’ that over the next 6 months, 2 million households are coming to the end of their fixed-rate mortgage deals.
Mr Sheppard concluded that these people will either be suspending or reducing pension contributions in order to meet their increased mortgage payments.