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Growing challenge of saving for retirement

Up to 20 per cent of people who have five years or less until they reach retirement age have no pension provision, according to MetLife research.

It shows that 22 per cent of people nearing retirement have private personal pensions. Within this total, 25 per cent of men run their own funds compared with 19 per cent of women.

Almost 40 per cent have final-salary schemes and 10 per cent are members of company money-purchase schemes.

MetLife says in addition to the 20 per cent who have no pension savings, another 4 per cent do not know whether they have any pension savings.

MetLife UK retirement and savings business strategic development and marketing director Dominic Grinstead says: “The current generation of people nearing retirement have been relatively lucky in that they have had access to final-salary schemes and have been able in many cases to rely on their employer to provide pensions.

“Even with those opportunities, one in five people have not been able to save into a pension. Unfortunately, the tide has now turned and younger people face even more challenges in saving for their retirement. The industry needs to address this issue and provide solutions.”

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