Pensions Index shows dramatic fall

28 June 2006
The Scottish Widows Pensions Index has shown there is a nine per cent year-on-year fall in those saving adequately for their retirement.

According to the survey, 46 per cent of people in 2006 are saving enough money to comfortably retire at the set age, compared with 55 per cent in 2005.

This significant decline is worrying to many industry analysts who fail to see how this could have happened because of the massive amounts of publicity surrounding pensions in the last 12 months.

The A-Day changes to pension savings and Lord Turner's report into the possibility of a National Pensions Savings Scheme (NPSS) have meant a radical shake-up of savings logistics and estimates, which has made headline news.

"The deterioration in the index…is very disappointing," said Ian Naismith, head of pensions market development at Scottish Widows.

"In fact, our figures show that that two in five are saving nothing at all. With this level of under-saving, no-one can be in any doubt about the challenge facing us all when it comes to preparing for retirement."

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