Saving towards a pension should be a priority for people long before they reach retirement , it has been suggested.
Malcolm McLean, chief executive of The Pensions Advisory Service (TPAS), said the main issue with pensions saving is the lack of preparation.
"The problem … is that people don't have a plan for their pension," he commented, adding that they "drift along – almost sleepwalking" without a savings plan .
Mr McLean commented that they assume that when they retire, they will have sufficient income to survive.
In reality, "very few" people have thought about how they can save money for their pension and ensure they are in a financial position to enjoy a certain lifestyle in retirement.
"People need to have some foresight and to do it now rather than five minutes away from retirement," he added.
The Office for National Statistics, in its Pensioners' Income Series 2005-06, noted that there are 8.1 million pensioners in the UK.
Of these, a quarter receive their income from occupational pensions , with 45 per cent relying on state benefits.
Investment income accounts for nine per cent, according to statistics, while three per cent receive income from personal pensions .
Saving should start earlier, says expert
Saving should start earlier, says expert
Fri, 24 Aug 2007
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