Personal Pension  

Pension ‘apathy’ leaves less than a third of over 55s saving

Younger people are beginning to show some signs that they are beginning to take the right steps to control their future as over half are now saving for a pension, but “apathy and confusion” among older savers has left just 30 per cent of over 55s with an active pension in place.

An Aegon UK survey into retirement readiness also reveals that one in four over 55s do not know how much income they’ll get from their savings in retirement, while 30 per cent do not know how much they will need to live on in retirement.

Two thirds of the 1,191 survey respondents of all ages admitted they had no protection in place to provide an income should they be unable to work before they retire.

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However, the report did find that younger respondents aged 25 to 34 are showing some signs that they are beginning to take the right steps to control their future, with 53 having a pension in place and 48 per cent saying that have a ‘good or exact’ understanding of what it’s worth.

Aegon found that this young group “is very aware” of how much income they’ll receive in retirement.

The pensions gender gap remains wide, the report found, with almost 40 per cent of women having no form of active pension compared with 30 per cent of men.

The biggest provision shortage is in Wales and the South West of England, where 46 per cent and 42.9 per cent of respondents respectively have no personal or workplace pension.

Duncan Jarrett, managing director of retail and ‘at retirement’ at Aegon UK, labelled some of the findings “alarming”, highlighting that there are “worrying levels of confusion, apathy and realism”.

He said: “Perhaps the most worrying finding of all is that these poor planning trends are evident in those closest to retirement, in the 55+ age bracket. Many industry analysts and the media have previously claimed there is a pensions time bomb ticking in the UK, but our study suggests time has almost run out.

“Contrary to this there are positive signs in the younger respondents as 25-34 year olds are demonstrating early signs of strong retirement planning and personal responsibility.

“There is huge room for improvement, but there are simple solutions for this important problem that can be adopted by anyone.”