Pensions losing out to savings products: YouGov
YouGov figures showed 27 per cent of consumers are saving using other products such as Isas or cash accounts, rather than investing into their pension.
More than 45 per cent of IFAs reported cash Isas as the most popular home for their clients’ savings other than pensions, followed by bank/building society accounts - 38 per cent - and premium bonds, at 20 per cent.
The most favoured options for clients of IFAs are equity Isas, 81 per cent, cash Isas, at 74 per cent and bank/building society savings accounts, at 57 per cent.
A previous survey from YouGov found that 69 per cent of IFAs don’t believe their clients are saving enough, with only 18 per cent of advisers happy that their clients will have the pension pot necessary for a comfortable retirement.
It also discovered that over half of customers – 56 per cent - said they had a personal pension or pension through their workplace, including half of all those aged 25 to 34.
The figures were higher among 35-54 year olds - 60 per cent - and pensioners - 71 per cent - but YouGov says the majority - 51 per cent - of all consumers were unclear on how much they were hoping to accumulate before retirement.
Jennifer Storrow, managing director at Shrewsbury-based Gee and Company, said: “It depends on the client’s age, but what the market has taught us is that you need to be invested at least five years.
“The cash Isa limits are not enough for the long term, and I still believe in a combination of pension, investments and savings.”