UK pension system 'has been neglected in the past'

By Tom Farley, Thu 4 Aug 2011 - Published in Pensions

In the last few years, there has been a general culture of neglect towards pensions in the UK, according to Hargreaves Lansdown.

The firm added that this is because of the government, employers and individuals.

On top of this, the company noted only around a third of private sector employees are members of a workplace pension scheme.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "The automatic enrolment of workers into pensions over the next few years, together with the steps that are being taken to simplify the pension system, mean that in five years time the picture will look considerably better than it does today."

According to a recent report by the Workplace Retirement Income Commission, people must get a better deal from their pensions if they are going to save enough for their retirement.

The organisation added that with ten million people expected to be automatically enrolled into a workplace pension from next year the UK's system needs to be improved.

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