People are losing confidence when it comes to investing their money, according to a new study.

The Standard Life Savings & Investment Index found that less than a third of people plan to save money over the next year, the lowest figure it has ever recorded. One in ten said they are going to save less money and 45 per cent are not saving anything at all.

Among those who are putting money aside, independent savings accounts proved to be the most popular way of investing money, followed by occupational pension schemes, personal pensions and self invested personal pensions.

Trevor Matthews, chief executive of UK Financial Services for the firm, attributed the "dramatic" figures to a drop in investor confidence as a result of the current volatile financial markets.

He said: "At a time like this I believe it is important to remind people not to lose sight of the big picture and to continue to adopt a long-term perspective about assets such as property and stocks and shares."

According to Scottish Widows, there is a recent trend developing of people investing money in property rather than a pension to fund their retirement.

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