The "confidence crisis" surrounding the British pensions
sector is deepening, it has emerged.
According to Alliance Trust's annual retirement confidence
index (RCI), the gap in those failing to put money away for
later life is rising as some 26 per cent of consumers are
currently without any form of pension - up from 20 per cent
noted last year. However, with evermore Britons set to face
financial difficulties later in life, it appears that women
could be in line for the greatest strife. Just under a
third (31 per cent) of females are currently not making any
contributions towards a savings fund, an increase from the
23 per cent recorded during last year's RCI. Meanwhile, 22
per cent of men are without retirement provisions, up from
the 17 per cent noted last year. In addition, the
proportion of people who believe they will receive a state
pension in later life stands at 35 per cent - a fall from
the 49 per cent recorded last year.
The study also showed that more than half (55 per cent) of
Britons between 18 and 29 years of age are without any sort
of savings account for later life. However, with this in
mind, only six per cent of consumers in the age bracket
feel "totally unconfident" that they will not be able to
put enough money away to fund a "comfortable retirement".
Yet it was consumers in the "prime of their working lives"
who could be set for the most retirement trauma as one in
ten people aged between 30 and 49 are "totally unconfident"
that they will be financially comfortable in later life.
Meanwhile, only one per cent of Britons within this age
group are "totally confident" about their future.
Hyman Wolanski, head of pensions at Alliance Trust, said:
"It is worrying to see that many in the prime of their
working lives are most uncomfortable about their retirement
prospects. It is clear that serious action needs to be
taken to tackle the problem to break this trend. Our
research shows it is now more important than ever for
people to ensure they have a proper pension plan tailored
to suit their individual circumstances. For example,
locking regular sums into a pension might often be put off
in favour of more immediate financial demands but with the
range of saving products available today, there is now much
more flexibility than ever in how people can save for their
future."
He claimed that a pension is not the only method by which
consumers can prepare for their financial future,
indicating products such as individual savings accounts as
possible options. "But irrespective of the means, it is
important action is taken and serious provisions are made,"
Mr Wolanski pointed out.
And with millions of consumers struggling to save into
pensions, problems managing their money may extend into
other areas of their finances such as developing
difficulties in paying back loans and credit cards.
Consequently opting for a bad credit loan could well be an
advisable option for reorganising your monetary situation
and getting back on your feet. Earlier this year, James
Cotton, mortgage specialist for London & Country, suggested
that those who have taken out a bad credit loan may still
be able to access mortgages with competitive rates of
interest.
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Abbi Rouse is Editor in Chief for All About Loans. Our
visitors have access to online loans of all types: From
home improvement loans to bad credit debt consolidation
loans. Visit our site today: http://www.allaboutloans.co.uk
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