Retirement news
Cash-strapped Brits struggle with pension savings
31 July, 2006
People still see saving for a pension as a low financial priority as they struggle to balance setting aside a reasonable amount for the future with the financial demands of everyday living.
Research by Barclays shows that nearly one in two (43 per cent) of people regard being able to set aside a realistic amount as the main issue they are faced with when planning for their retirement.
Those who are able to save for their retirement do so in a range of ways, but pensions remain at the heart of their plans, with 77 per cent using them to fund their retirement.
A further 34 per cent of people are saving through an ISA or a PEP. The research show that people view these investments as a supplementary means of financing their retirement outside of the traditional pension wrapper.
And self-invested personal pensions (SIPPs) are becoming more popular since the overhaul of the pension system earlier this year. Flexibility of how and when payments could be made is a factor considered by 22 per cent of those surveyed. While 21 per cent looked for control over their pension fund.
Stephen Ingledew, director, Barclays Financial Planning, said: “Consumers are looking for products that make best use of the benefits brought about by A-Day, such as flexibility, the ability to manage your own pension investments and increased tax allowances.”
Bookmark with:
