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Six million &#39complacent&#39 on pensions

The six million consumers who could afford to save for retirement but are not doing so will become the target market for Sandler&#39s stakeholder suite of products and have been branded “complacent” by a leading consultancy.

Research by consultants B&W Deloitte presented at the recent Treasury-sponsored seminar on the Sandler Review shows 13 million Britons are off track for a comfortable retirement. For six million, this underfunding is caused by their own complacency.

It has identified this group as forming the tar-get market for Sandler&#39s stakeholder-style products rather than a target defined by income or sociodemographic groups, as in the case of stakeholder pensions.

Research shows 42 per cent of 25 to 65-year-olds are on target for a comfortable retirement, with 36 per cent not saving enough and 4 per cent already retired, while for a further 18 per cent it is too early to say.

B&W Deloitte says this underfunded sector divides into seven million low-income earners who will depend on the state in retirement and six million complacent consumers who can afford to save but do not.

The research said a low charging structure is a less important criterion for non-savers than a capital guarantee, a simple product and a well-known brand.

B&W Deloitte director Jackie Wells says:”Complacent is a label we use that flows from the analysis of this group that actually has a higher average income than those who are on target to retire comfortably. The thrust of Sandler is about drawing these consumers into the market so they can make better choices.”

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