Early warning “Wake-up” Call … Pension provisions become a prerequisite for millions

Findings from a recent study by The Workplace Retirement Income Commission; funded by the National Association of Pension Funds, suggest millions of employees are failing to make adequate pension provisions in order to provide themselves with a decent income in retirement.

The study suggested there is a current lack of trust in the pension system since their investment return decreased because of low interest rates caused by the global recession. Many feel the current pension system is far too complicated which in turn deters them from saving enough, or indeed, at all.

However, due to the increase in life expectancy, saving adequately for retirement has never seemed more important. The automatic enrolment into workplace pension schemes starting next year is hoped to encourage more employees to save towards their pensions – although this will not encourage everyone, many employees will not meet the minimum income criteria for the automatic enrolment - there is also the fear that those that do, may “opt-out”, disregarding the possibility of a poor standard of life in retirement.

The study declared that over the past ten years the proportion of employees, whether male or female, saving into a pension, has fallen substantially and it suggested employees would only start to save in to a pension if there was an overhaul of the current pension systems; making them concise and clearer to understand whilst also delivering a better deal.

This report, which will be presented to the Pensions Minister, has highlighted the need to create a far greater, more dependable pension system in order to encourage employees to save. Times have changed and a radical reform seems essential to prevent many millions of our population living their retirement in poverty.

The following article was written for Welbeck Independent who offer bespoke financial solutions. To discuss your pension, or retirement preparation, please do contact us.

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For media enquiries contact:

Nick Evans

T: 020 7776 2135
M: 077 7621 2000
E: nick.evans@welbeckgroup.com