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State pension the only pension for 37% of Brits

02 October 2009 / by Rebecca Sargent

More than a third of Brits are relying on the state pension to fund their retirement, research from Baring Asset Management has revealed.

The study revealed that 37 per cent of working Brits have not made any pension arrangements and are relying entirely on the state to fund their retirement.

The number of people without their own pension scheme has increased by two per cent each year for the past three years.

And, despite the fact that starting early is imperative when it comes to pension saving, the number of young adults aged between 25 and 34 without a pension has grown four per cent in the past year to 42 per cent.

Marino Valensise, chief investment officer at Barings said: "It's disappointing to see a continued drop in the number of people making their own pension arrangements.

"It's particularly concerning to see fewer younger people building their own retirement pot. With an increasingly aging population things could get worse over the decade to come."

As the recession continues, people may be blaming the financial crisis, Mr Valensise argues, adding: "People still seem to be burying their heads in the sand but we strongly recommend seeking professional financial advice to help them understand exactly what they have in their pension pots and what sort of income they'll expect in retirement."

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