32% 'not saving in pension plan'

moneyConfusion about pensions is widespread among British adults, with many failing to prepare for their retirement, a survey suggests.

Almost one in three (32%) employed adults are not saving for a pension, rising to almost half (48%) among under 35-year-olds, the poll found.
Of those that do hold a pension, half are not aware of how much they can change their contributions, with almost three in five (57%) unaware of how their pension is invested.

The study, commissioned by Friends Life, is based on a survey of 1,000 adults aged 18 and over.
The findings show that two in five (41%) people with a pension say they are not at all, or not very aware of the current value of their pension. Seven in ten (71%) say there is too little information available about pensions, with more than half (57%) saying the subject is confusing.

Just a third believe they have all the information they need to make well-informed decisions about their future finances. And 71% believe that all employers should be legally obliged to provide a pension scheme.

The report also reveals that many people do not think it is just down to the individual to make sure they are financially aware.

The majority (83%) say not enough is done to educate people about money matters, with nearly two thirds (63%) saying they wished they had received financial education lessons at school.

A similar proportion (65%) say financial advice should be offered at work.

Martin Palmer, head of corporate benefits marketing at Friends Life, said: "The current economic climate is not helping the situation and people will have other financial commitments or priorities, but we need to help individuals get to a position where they see the real value of putting money aside for the short, medium and longer term."

© 2011 Press Association
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