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
Pensions Quote Line
0845 108 0505
Scottish Widows reveals fall in UK pension savings
Wed, 28 Jun 2006
Recommended links
A complete guide to pensionsGet a free pension quote
Pension glossary
Hutton confirms affordability of new pensions
Reaching retirement harder, experts warn
Millions could benefit from company pensions
DWPs guide to pensions and retirement
Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.
1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
| pensions news |
|---|
| Pension minister wants to reform benefits - Mon, 21 Jul 2008 |
| Pension accounting concerns - Tue, 08 Jul 2008 |
| Just 5 per cent would let Brown handle pension - Fri, 27 Jun 2008 |
| More News |
Pensions Newsletter
Please enter your email below and subscribe to our monthly newsletter
Save on Your Mortgage
Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.
Protect Your Health
Find Critical illness, Life and Private Medical Insurance PMI policies.