Pensions News

Pension concerns 'don't translate into action' - 08/01/2008

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A pensions expert is warning that despite worries about the level of pension provision offered by the government, consumers are failing to act on their concerns.

Rachel Vahey, head of pensions development at Help the Ages subsidiary firm Aegon, states that most people now have a clear grasp of the limits of state pension provision.

She claims there is a "general consensus" that the government cannot provide enough pension income to offer most people comfort in their old age.

Despite this, Ms Vahey observes a reluctance to act on this knowledge within the UK population, with Britons feeling powerless to act on their worries about the future.

"I think a lot of people are reluctant to face up to the truth," she remarks, adding that there is a "gap between having the knowledge there and actually saving for a pension".

Citing research from Aegon showing that about 20 per cent of people have no pensions or savings set aside for their retirement, Ms Vahey describes the level of apathy as "frightening".

However, attitude cannot explain the phenomenon in its entirety and the head of pensions development claims that the increased financial pressure facing Britons is impacting upon their level of pension saving.

A study carried out by the company in August 2007 found that 30 per cent of adults surveyed expect to need between £15,000 and £20,000 each year for a comfortable retirement.

© Adfero

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