Passion for savings interest rates is 'vital'

Making changes to pensions would encourage people to become more impassioned about contributing to accounts with good savings interest rates.

Dr Ros Altmann, the director general at Saga, has said that pensions have become a dirty word and people have forgotten the need to build up funds in accounts with the best savings rates in order to live comfortably in retirement.

"It is absolutely vital that we reinvigorate long-term savings. People have lost faith in pensions and many have put no money aside for retirement, never mind for long-term care. We cannot go on like this. Saving more is important," she stressed.

The expert suggested that perhaps savings and pensions providers could create a lottery scheme as the chance of short term financial gain would encourage many saving-averse people to contribute more.

Meanwhile, Martin Bamford, chartered financial planner at Informed Choice, said that the UK needs to get better levels of finance education to boost the savings culture.

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2011-05-09 16:04:12 © Moneyextra.com