Less than half of Brits saving for retirement

Despite most people believing that pensions are important for supporting them in retirement many are failing to access the best savings rates.

A study by Defaqto found that only 40 per cent of respondents are saving for later life and 20 per cent are not saving for their retirement.

According to the survey of 1,000 consumers, 19 per cent do not believe that pensions are a safe investment and instead prefer the easy access that a savings account provides.

Matt Ward, Defaqto's wealth management consultant, said: "It is reassuring that over half of people see pensions as key to financing their retirement. However, it is clear that people are not following this through in terms of actively saving for later life."

Consumers who took part in the survey said they would be more likely to invest in pension schemes if they were guaranteed a better return from their savings, better tax incentives for saving and more flexibility over how people can take the benefits.

Earlier this year a Defaqto survey found that 44 per cent of people were not confident that their needs would be met during retirement.
 

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2010-12-16 12:59:06 © Moneyextra.com