Doom and gloom in pension market is true

The flooding of negative news surrounding pensions should not be underestimated, claims Prudential.

According to the financial services company, although many of those that are retiring now or in the near future are enjoying the benefits of final salary schemes, around 80 per cent of these are now closed to new members.

Ali Crossley, retirement insurance director for the firm, explained that because of these recent reports, people should begin to save for their pension sooner rather than later.

“That doesn’t necessarily mean, and probably shouldn’t mean, they put everything into a pension, but they should start to put some money away into Isas, into property, into a whole mixture of assets,” she said.

However, ensuring they have began saving in some form will mean they have something to fall back on when they retire, she added.

The Office for National Statistics reports there were 3.3 people of working age for each person of pensionable age in the UK during 2003 but this figure is estimated to decrease by one per cent by 2051.

© Adfero Ltd

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