More than one third (36%) of adults in Great Britain, who are not already retired, do not have a personal or company pension in place, according to YouGov research commissioned by employee benefits adviser Foster Denovo.
The survey also highlighted that more than a quarter (28%) of people aged between 25 to 44 do not have any provisions – such as property, inheritance or savings – in place for retirement, while 11% of this age group confirmed that they had not yet considered how they would cope financially at the end of their working life.
Ian Bird, senior partner at Foster Denovo, said: “The lack of awareness and insight amongst consumers when it comes to pensions is a cause for extreme concern. However, I believe that much of this is down to a severe lack of financial education and available information.”
The survey also revealed that more than two thirds (68%) of non-retired men in Great Britain have a pension, compared to 60% of women. Bird added: “This figure is likely to be representative of women’s childcare commitments, but it is clearly an issue that the pensions industry must address. It needs to look at what support it can provide to reverse this trend.”
When asked whether the current economic climate has made those not already retired less likely to invest into a pension, more than one third (38%) stated that it had. More than half (52%) advised that their outlook had been unaffected by the economic downturn, which some commentators believe has eroded public confidence in the financial sector.
A quarter (25%) of those surveyed stated that they believed they would need to work to the ages of 70 to 79. This figure rose to 31 percent for the 25 to 34 year old age group. In response to this, Bird added: “Believing that you will work to a certain age is all very well, but it isn’t always realistic. Many people find themselves unable to work in later years, usually for health-related reasons. Thinking that you can ‘save later’ is not always an option.”