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Half of the UK not saving, says Scottish Widows

Only 51 per cent of Britons who could be preparing financially for retirement are saving adequately, according to the Scottish Widows Pensions Report.

Scottish Widows says while this is up slightly from 49 per cent last year, a third of savers say they can’t afford to put anything more aside.

Almost 60 per cent of people claim they will not save any more in the next 12 months and of those without a private pension, 44 per cent believe they will never contribute to one.

Scottish Widows head of pensions market development Ian Naismith says there is a distinct sense of pessimism emerging from the survey results, with consumer confidence falling compared to last year.

He says: “While a number of people are beginning to save more consistently within short term savings vehicles such as ISAs, many people just don’t see how they can afford to put anything extra aside and this doesn’t look to be improving over the coming months. With the cost of living rising and the nation struggling to make ends meet the outlook isn’t getting any brighter.”

Hargreaves Lansdown head of pension research Tom McPhail says he believes the situation will get worse before it gets better.

He says: “There’s rising pressure on household finances, a wage squeeze and rising inflation and pensions are likely to be compromised. The current market conditions present a challenge to the pensions industry to make sure investors don’t fall behind in their retirement savings.”

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