Pension provider Scottish Widows has seen a "dramatic" fall in pension savings in the UK.
The company's pension index has dropped by nine per cent, which it states brings the number of people making adequate pension savings down to 46 per cent in 2006.
Ian Naismith, head of pensions market development at Scottish Widows, commented: "Our figures show that four in every five people who aren’t relying on a final-salary pension are failing to save adequately for their retirement, and that two in five are saving nothing at all.
He continues that the fall in pension savings may mean a crisis will be faced by many UK residents upon reaching retirement.
A lack of pension savings is something the industry needs to be aware of, concludes Mr Naismith, as although a national pensions savings scheme is to be brought into effect as part of the pension reforms, many UK residents could simply opt-out, and be left with no personal pension plan.
The government reforms, as part of the pensions A-Day, will bring auto-enrolment for UK residents into effect, but will leave the chance to opt-out for many who may prefer to pay into their own personal pension plan or company pension.
Scottish Widows reveals fall in UK pension savings
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Scottish Widows reveals fall in UK pension savings
Wed, 28 Jun 2006
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