UK Pension Gap 'Widens'
- Date: 2007-09-05 - Word Count: 540
Share This!
The "confidence crisis" surrounding the British pensions sector is deepening, it has emerged.
According to Alliance Trust's annual retirement confidence index (RCI), the gap in those failing to put money away for later life is rising as some 26 per cent of consumers are currently without any form of pension - up from 20 per cent noted last year. However, with evermore Britons set to face financial difficulties later in life, it appears that women could be in line for the greatest strife. Just under a third (31 per cent) of females are currently not making any contributions towards a savings fund, an increase from the 23 per cent recorded during last year's RCI. Meanwhile, 22 per cent of men are without retirement provisions, up from the 17 per cent noted last year. In addition, the proportion of people who believe they will receive a state pension in later life stands at 35 per cent - a fall from the 49 per cent recorded last year.
The study also showed that more than half (55 per cent) of Britons between 18 and 29 years of age are without any sort of savings account for later life. However, with this in mind, only six per cent of consumers in the age bracket feel "totally unconfident" that they will not be able to put enough money away to fund a "comfortable retirement". Yet it was consumers in the "prime of their working lives" who could be set for the most retirement trauma as one in ten people aged between 30 and 49 are "totally unconfident" that they will be financially comfortable in later life. Meanwhile, only one per cent of Britons within this age group are "totally confident" about their future.
Hyman Wolanski, head of pensions at Alliance Trust, said: "It is worrying to see that many in the prime of their working lives are most uncomfortable about their retirement prospects. It is clear that serious action needs to be taken to tackle the problem to break this trend. Our research shows it is now more important than ever for people to ensure they have a proper pension plan tailored to suit their individual circumstances. For example, locking regular sums into a pension might often be put off in favour of more immediate financial demands but with the range of saving products available today, there is now much more flexibility than ever in how people can save for their future."
He claimed that a pension is not the only method by which consumers can prepare for their financial future, indicating products such as individual savings accounts as possible options. "But irrespective of the means, it is important action is taken and serious provisions are made," Mr Wolanski pointed out.
And with millions of consumers struggling to save into pensions, problems managing their money may extend into other areas of their finances such as developing difficulties in paying back loans and credit cards. Consequently opting for a bad credit loan could well be an advisable option for reorganising your monetary situation and getting back on your feet. Earlier this year, James Cotton, mortgage specialist for London & Country, suggested that those who have taken out a bad credit loan may still be able to access mortgages with competitive rates of interest.
According to Alliance Trust's annual retirement confidence index (RCI), the gap in those failing to put money away for later life is rising as some 26 per cent of consumers are currently without any form of pension - up from 20 per cent noted last year. However, with evermore Britons set to face financial difficulties later in life, it appears that women could be in line for the greatest strife. Just under a third (31 per cent) of females are currently not making any contributions towards a savings fund, an increase from the 23 per cent recorded during last year's RCI. Meanwhile, 22 per cent of men are without retirement provisions, up from the 17 per cent noted last year. In addition, the proportion of people who believe they will receive a state pension in later life stands at 35 per cent - a fall from the 49 per cent recorded last year.
The study also showed that more than half (55 per cent) of Britons between 18 and 29 years of age are without any sort of savings account for later life. However, with this in mind, only six per cent of consumers in the age bracket feel "totally unconfident" that they will not be able to put enough money away to fund a "comfortable retirement". Yet it was consumers in the "prime of their working lives" who could be set for the most retirement trauma as one in ten people aged between 30 and 49 are "totally unconfident" that they will be financially comfortable in later life. Meanwhile, only one per cent of Britons within this age group are "totally confident" about their future.
Hyman Wolanski, head of pensions at Alliance Trust, said: "It is worrying to see that many in the prime of their working lives are most uncomfortable about their retirement prospects. It is clear that serious action needs to be taken to tackle the problem to break this trend. Our research shows it is now more important than ever for people to ensure they have a proper pension plan tailored to suit their individual circumstances. For example, locking regular sums into a pension might often be put off in favour of more immediate financial demands but with the range of saving products available today, there is now much more flexibility than ever in how people can save for their future."
He claimed that a pension is not the only method by which consumers can prepare for their financial future, indicating products such as individual savings accounts as possible options. "But irrespective of the means, it is important action is taken and serious provisions are made," Mr Wolanski pointed out.
And with millions of consumers struggling to save into pensions, problems managing their money may extend into other areas of their finances such as developing difficulties in paying back loans and credit cards. Consequently opting for a bad credit loan could well be an advisable option for reorganising your monetary situation and getting back on your feet. Earlier this year, James Cotton, mortgage specialist for London & Country, suggested that those who have taken out a bad credit loan may still be able to access mortgages with competitive rates of interest.
Related Tags: loans, credit, cards, pensions
Abbi Rouse is Editor in Chief for All About Loans. Our visitors have access to online loans of all types: From home improvement loans to bad credit debt consolidation loans. Visit our site today: http://www.allaboutloans.co.uk Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are