UK workforce neglects pensions saving

| July 31, 2009 | 0 Comments
UK workforce neglects pensions saving

Nearly one in six workers has given up saving for a pension, new research has discovered.

A study by pension provider Prudential found 16% of the UK workforce have reduced contributions to their pension fund or stopped saving altogether, in the last five years.

In the same period, almost one in ten (9%) of those polled have opted out of a final salary pension plan.

Given its findings, Prudential predicts an increase in pensioner poverty with the number of people relying on the state for a pension set to increase from 22% to 27% over the next decade.

“It’s worrying that many people who have been working for years and saving for retirement seem to have given up hope and stopped paying into their pension”, said Martyn Bogira, Prudential’s director of defined contribution solutions.

“It’s also really worrying that many people either planning to retire imminently or within the next decade still believe the state will support them when we know that, for many people, this just won’t be the case.”

Workers should be paying as much as possible into their pension fund, Bogira said.

“Take the opportunity to pay as much into your pension as you possibly can and talk to your employer about your pension options.”

“With the growing body of evidence suggesting the state pension will be inadequate for many people in old age and with final salary schemes disappearing, now is the time for people to take advantage of the pension schemes which are available to them.”

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