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Savers put holidays before retirement

More people are saving for their next holiday than for retirement, according to a report from Defaqto.

The Retirement Income and Savings Report, published last week, highlights the complacency that many people have about retirement funding, with over one-third saying they are not saving at all.

Seventy per cent of respondents said they would be relying on the state pension in retirement while many wanted more guarantees about how much their savings would grow and also more incentives to save in the first place.

A third of respondents thought that contributing to a pension should be compulsory and around half said employers should have to provide pensions for employees.

Pensions and wealth management principal consultant Matt Ward says: “Our research showed that many people are sleep-walking into retirement. While the majority are planning to retire from full-time work at or around normal retirement age, many people realise that their income in retirement may not meet their needs.”

For this reason, he says 50 per cent of workers expect to continue doing some work in retirement or to defer their retirement to make their savings last as long as possible.

Ward says: “Relying on part-time work could be really dangerous, partly because the jobs might not be there when they are needed and partly because people may not be able or, indeed, incli- ned to work when it actually comes to it.”


Chief executive for Delivery Authority

Tim Jones has been named chief executive of the Personal Accounts Delivery Authority. Jones was chief executive of retail banking at Natwest and will take up the post immediately. He is currently co-director of the Centre for the Study of Financial Innovation.

PBR: Fidelity says CGT changes are a “shot in the arm” for long-term savings

Fidelity says the Chancellor’s decision to set capital gains tax at a flat rate of 18 per cent means investors in equity funds are big winners and says this move could boost long-term savings.Chancellor Darling set out the changes in his pre-Budget report yesterday and Fidelity says investors in equity funds held outside of a […]

Lines of attack

Prime minister Gordon Brown has ruled out going to the polls this year. However, the election fever that gripped the nation over the past few weeks has revealed the dividing lines between the major parties on financial services issues. We look at how their policies on protection, mortgages, housing, tax and pensions are shaping up


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