UK - Nearly a third of people do not regard a pension as the most secure way of providing for their retirement, a new study reveals.
Research by the department for work and pensions shows that only 50% of people currently have a pension – although 70% say they did have a private pension at some point in their working lives.
When asked what source of retirement income they expected to rely on, only a third said occupational pensions, 14% said personal pensions and 20% looked to the basic state pension. A further 13% expected non-pension sources to provide the majority of their income in retirement.
Almost half of respondents thought an “adequate income” in retirement would be a weekly income of up to £250.
But the DWP stressed that it was “questionable” whether people will achieve an income in retirement to meet their expectations – particularly the 8% who had never had a private pension and reported an adequate income that was more than their current salary.
People were evenly split on whether the individual (46%) or the government (44%) should be mainly responsible for ensuring they have enough to live on in retirement. Only a minority (9%) felt that this should be the responsibility of their employer.
Association of British Insurers head of pensions Joanne Segars said: “The results graphically illustrate the need for the government to raise awareness and understanding of the need for people to save.”
She said the government needed to reform the state pension system, consider further incentives to make saving more affordable and promote greater awareness through the workplace.
The research – Public Attitudes to Pensions and Saving for Retirement – is based on analyses of questions placed on the National Statistics Omnibus in March 2002.
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