The Association of British Insurers (ABI) revealed that 8.3 million people are not making any provisions for their retirement.
The research called The State of the Nation’s Savings 2005, is carried out on an annual basis by the ABI. This year showed that the working population in Britain is not saving enough money for a pension (31 per cent.)
The research identified that the single reason for people not saving was the amount of debt they have.
The survey highlighted the average non-mortgage debt as being £9000 per household. Therefore saving for a pension is not a priority on most people’s list.
Helen McCarthy, head of pensions and savings development for the ABI said, "There is clear evidence that if the right action is taken on pension reform, many millions of people will begin to save, and save more, for their retirement.
"Lord Turner’s proposals on automatic enrolment are a step in the right direction. But the government must be careful not to turn people off saving.
"The private sector, with its expertise and experience in running pension schemes, must play a big part in taking Turner forward."
Mark Osland, director of IFA Formula Ltd based in Surrey said, "The lack of savings is a failure of regulation and is because of government intervention.
"It is easier to spend money than save money and the government has created that situation."
The increase of personal debt hinders people saving for a pension
The increase of personal debt hinders people saving for a pension
Tue, 13 Dec 2005
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