Statistics released by Friends Provident Life and Pensions shows that total new business in the sector is up by around 40 per cent, year-on-year.
Through the first nine months of 2006, life and pensions business has increased to £4,629 million, up by 39 per cent against the same figure for 2005. The total value of new accounts in the UK is up 34 per cent, year-on-year, to £3,039 million, while group pensions are up by 46 per cent to £1,633 million.
The figures are a positive sign for the pensions market and for economic analysts, who have long been predicting a "pensions time-bomb" if more people do not take out private retirement savings accounts to supplement their guaranteed state income.
"We have sustained our impressive growth rates from the first half of the year," said Ben Gunn, chief executive of Friends Provident Life and Pensions.
"In the UK our leading group pensions franchise has continued to support profitable growth, with a useful contribution from individual pensions business in the third quarter. These results clearly demonstrate our ability to drive growth in both the UK and international businesses."To read more about personal pensions, click here.
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