Thursday 23rd August 2007
There has been a "definite shift" away from pensions in Britain in recent years, according to the Pensions Advisory Service (PAS).
Malcolm McLean, chief executive from the PAS said that many employers were cutting back on pensions, and young people were also failing to put money aside for the future.
He warned that this reluctance to save was leading to a "demographic time bomb" which needed to be addressed "sooner rather than later".
According to figures the Office for National Statistics, in 2005 to 2006 there were 8.1 million pension units in the UK, and of these, state benefits accounted for around half of pensioners' income, occupational pensions made up a quarter, investment income accounted for nine per cent and personal pensions made up three per cent.
Mr McLean warned that if people continue to live longer, and save less, the effects could be "disastrous".
"The problem … is that people don't have a plan for their pension.
"They drift along - almost sleepwalking - thinking that at some point in their lives they will retire and somehow they will have an income which will be sufficient," he said.
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Pensions
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