Scottish Widows: Pensioners will be left behind

21 June 2007
Twenty-five per cent of the population will not have an adequate pension when they retire, according to Scottish Widows.

The Scottish Widows Pensions Index, which monitors individual savings, shows a rise to 49% in 2007 of the number of people with pensions (a 3% rise since the 2006 index), but it still remains 6% lower than in 2005.

The survey shows that while almost half of the population is taking action to provide for their golden years, 25% are not doing anything at all and the remaining 24% have final-salary pensions only, where your employer provides a portion of your final salary as a pension, depending on your length of service to the company.

Of the quarter that are making no provisions at all, it is expected that women, the self-employed and those in debt are least likely to be properly prepared when the time comes.

Ian Naismith, head of pensions market development at Scottish Widows said “While confidence seems to be returning slowly to the pensions market, 51% of those who should be preparing for retirement are still not saving adequately.

“Despite pensions being front page news for much of the past year, there is still some way to go before the nation is truly on track.”

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