An increasing number of people will rely on savings accounts rather than a traditional pension to provide them with a retirement income, it has been claimed.
According to Keith Churchouse, director of Churchouse Financial Planning, people are avoiding pension accounts for alternative savings .
He said: "I do think that people are very unlikely to be reliant on pensions in retirement. They are likely to be reliant on savings, had they taken the opportunity to accumulate any."
The current economic downturn will also put people off from increasing their retirement savings he added.
People could be forced between choosing to put money into a savings account and feeding their family, he explained.
Yesterday, the latest Legal and General MoneyMood Survey revealed that the number of people putting money in to savings accounts increased was six per cent higher in April when compared to the same time last year.
Julia Clayworth, Legal and General's Wealth Management head of marketing, described the figure as "reassuring".
Savings preferred over pensions, expert claims
Savings preferred over pensions, expert claims
Wed, 04 Jun 2008
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