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Pension plans confuse millions of Brits

04 September 2009 / by Andy Davies

Millions of Brits have confessed they do not know how to set up a private pension plan, according to new research.

Friends Provident has found that 27 million people, around 58 per cent of UK adult population, said they are clueless when it comes to pension planning.

More figures published by the pension provider show that 55 per cent of UK adults believe they are not currently saving enough, or are already facing the reality that they have not saved enough for their retirement.

According to the research, many Brits are hoping that money they receive through an inheritance will help fund their retirement, with 31 per cent of people admitting to this, while 15 per cent of people have not considered making any pension plans.

Friends Provident is urging Brits to become more aware of the issues faced by older people and start planning early for funding their retirement.

Commenting on the findings, Martin Palmer, head of corporate pensions marketing at Friends Provident, said: "The research findings make grim reading. Today more than ever, it is vital that people take the time to understand the issues facing older generations in the UK - particularly the financial ones.

"The issues are not simply going to disappear but the hope is that by being more aware of these financial pressures we can start to equip ourselves for later years."

People who have yet to retire believe they will have to find alternative ways to fund their retirement, with 28 per cent saying they will continue to work until they have sufficient funds, while 23 per cent of people are planning to downsize their property or use an equity release plan to generate more cash.

Mr Palmer believes these measures can be avoided if people start retirement planning early enough.

He added: "By tackling retirement planning as early as possible and having an increased personal level of awareness of the financial stability needed in retirement, people will be able to enjoy their retirement and not spend time worrying about money."

© Fair Investment Company Ltd