Axa: Too few UK workers saving for retirement

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More and more people are looking to rely on the state pension when they retire, it has been reported.

According to research conducted by Axa, 64 per cent of UK employees are not saving into any scheme for when they cease working.

This means the UK now has the lowest occupational pension scheme membership rate in the elite G7 grouping, the firm says.

With the UK state pension amounting to just 31 per cent of the nation's average earnings – compared to 68 per cent in Italy - the benefits of putting money away and seeking the best rates of interest on savings are evident.

Steve Folkard, head of savings and pensions policy at Axa, said there needs to be more government messaging around the importance of pension saving.

"This should encourage individuals to take more personal responsibility in saving for an adequate level of retirement provision," he added.

"We risk heading past the point of no return for many people in this country who may be left living on the very minimum in retirement."

Earlier this week, Richard Saunders, chief executive of the Investment Management Association, claimed the government must do all it can to encourage long-term saving.

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Tags: occupational pension scheme , investment management association , retirement provision , richard saunders , average earnings , folkard , adequate level , state pension , membership rate , point of no return , axa , personal responsibility , pensions , chief executive , elite , italy , money ,

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2009-11-03 11:30:28 © Moneyextra.com