29 August 2007
·
Over a quarter of British adults fail to make any
provision for retirement
·
One in ten 30-to-49 year olds still have ‘no
confidence’ they will be able to provide for a comfortable retirement
Britain’s pension
gap continues to increase with more than a quarter (26%) of British adults
failing to make any provision for retirement, according to data from the annual
retirement confidence index (RCI) provided by financial services provider, Alliance
Trust.
The number of
people who say they have ‘no form of pension’ has jumped to 26% from 20% a year ago. The outlook is bleaker for women than men.
Nearly a third (31%) of women admitted to not making any pension provision in
the recent survey, compared with 23% of women in 2006, which shows things are
actually getting worse instead of better.
Among men, 22% said they had no retirement provision compared with 17%
in 2006. Final salary membership has fallen from 30% to 27%, but the biggest
fall is in the number of people who believe they will receive a state pension –
this fell to 35% this year from 49% in 2006.
The figures from Alliance Trust’s 2007 survey looking into retirement
reveal British adults in the prime of their working lives (aged
between 30 and 49) are still the least confident about their ability to provide
for a comfortable retirement with one in ten stating they were ‘totally
unconfident’. Only 1% of this age group stated they were ‘totally confident’
about providing for a comfortable retirement.
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”.
Over
half (55%) of 18-to-29 year olds currently do not have any form of pension, but
youth gives assurance, as only 6% of this age group feel ‘totally unconfident’
at being able to provide for a comfortable retirement.
Hyman
Wolanski continues: “One important point
for them to remember is that pensions aren’t the only way to save for
retirement; other more accessible savings products, such as ISAs, could be more
appropriate earlier in their savings life, with the option to transfer some of
this money into their pension fund later on in their career. But irrespective of the means, it is
important action is taken and serious provisions are made.”
|
Pension
provision |
Total
2006 |
Total
2007 |
Male
06 |
Male
07 |
Female
06 |
Female
07 |
|
I
don’t have any form of pension |
20 % |
26% |
17% |
22% |
23% |
31% |
|
Final salary
membership |
30% |
27% |
36% |
33% |
24% |
22% |
- ends -
Contacts
Tel +44 (0)1382
306064 Tel +44 (0)20 7566
9727 / (0)20 7 566 9719 Mobile 07745 783212 Email alliancetrust@lansons.com Email jane.holligan@alliancetrust.co.uk Web www.alliancetrusts.co.uk |
Notes to editors
1. The Retirement Confidence Index runs from
0 to 10, where 0 is ‘totally unconfident’ and 10 is ‘totally confident’ about
providing for a comfortable retirement. Alliance Trust tracks overall RCI
levels, as well as those for specific social groups, to gauge the impact of
future political and economic developments on the
2. You Gov Survey of 2,552 adults aged 18+. Fieldwork was undertaken between 16th - 21st
May 2007. The survey was carried out
online. The figures have been weighted and are representative of all GB adults
(aged 18+).
3. Alliance Trust is the brand name of
Alliance Trust Savings, a financial services company that offers investment dealing,
self-invested personal pensions and a choice of other investment products.
Alliance Trust Savings and its subsidiaries administer nearly £4.8bn on behalf
of more than 44,000 customers (as at 31 January 2007). Alliance Trust
Savings is a wholly-owned subsidiary of Alliance Trust PLC.
4.
Photographs of Hyman Wolanski are
available.