19 million Brits put 'blind faith' in pension reforms
- 40% of UK adults believe the UK pension crisis will be solved by the time they retire, including three out of ten 55 to 64 year olds
- Over half of UK adults (24 million people) refuse to cut back on spending to save for retirement, despite warnings that the UK is not saving enough
- Women and low earners are most optimistic about future of pension system
Despite Adair Turners stark assessment of
This faith in the rehabilitation of the UK pension system, despite widely-reported news to the contrary - highlighting the growing UK savings gap, and the possibility of a rising state retirement age - may explain why over half of UK adults (24 million people) are not prepared to cut back on spending to save more for retirement. And out of those who say they are already saving something, over two thirds (70%) claim they cannot save a penny more than they currently do.
Worryingly, more women (42%) than men (38%) are entirely confident about the current issues surrounding pensions being resolved before they retire, although women tend to benefit least from the current system. Likewise, significantly more people on lower incomes (social grades D and E), are optimistic (50%) than higher (ABC1) earners (37%), despite being most likely to be reliant on state provision in retirement.
David Elms, Chief Executive of IFA Promotion, says, Its apparent from the Turner Report that theres no one instant cure-all for the current pension crisis, but one thing is clear: the sooner individuals start saving for their own retirement, and the more they save, the better. Too many people are putting blind faith in the future of the state pension system and putting off taking action themselves. If you dont want to rely on winning the lottery or working into your dotage then you need to start planning for the long-term now.
For help with kick-starting your long-term savings you can call 0800 085 3250 or visit www.unbiased.co.uk/getsaving to obtain details of local independent financial advisers to talk through the most suitable options for you.
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* The Get Saving! 2005 report was produced for IFA Promotion by RAKM, and is partly based on an analysis of Inland Revenue, ONS, DWP Family Resource survey, Bank of England and ABI along with a specially-commissioned face-to-face consumer survey of 2,000 UK adults (16+), conducted by BMRB during October 2005. With detailed queries on the report, call
For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotions Media Services hotline on 020 7294 3682 or search online in Media Services at www.unbiased.co.uk
For further information please contact:
Chief Executive Lansons Communications
IFA Promotion 020 7294 3677 / 020 7294 3681
020 7833 3131
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