Brits 'need to start thinking about pensions again'

By Tom Farley, Tue 24 Jun 2008 - Published in Pensions

People in Britain could be facing an impoverished old age, a firm of independent financial advisers has warned.

Donna Bradshaw from IFG Financial Services said that the "national obsession" with property over recent years may have prevented people from saving as much as they should.

She also commented that while the move to defined contribution pension schemes may be better for people who change jobs regularly, people "haven't appreciated how much they should be putting in" in comparison to final salary pension schemes which usually see higher contribution levels.

Ms Bradshaw stated: "Over the years we've made pensions unattractive with maybe too much legislation, but we need to focus people through an education process."

The Fidelity Retirement Index indicates how much income people are likely to receive when they stop working full-time, as a proportion of the amount they are likely to be earning just before retirement.

Currently, the typical household is looking at about 42 per cent, significantly below the two-thirds that the Pension Commission's proposals would like to see the typical worker achieve.

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