The British public has lost confidence in pensions, it has been argued.
Commenting on government figures showing a fall in payments into private pension schemes since the recession began, director of financial planning and wealth management services firm Addidi Wealth Anna Sofat said the economic downturn was not to blame.
Instead, she said: “Confidence has been shaken given the fact much of pension money is invested in equities and equities have not really provided real returns over the past ten years.”
Ms Softa added that the industry needed to make its pension products more “attractive” to encourage investment, something she said will be necessary as state provision declines.
The Office for National Statistics data showed that £82 million was invested in private pensions in 2008, compared with £86 million in 2007.
Such figures were produced by a drop in employer contributions to schemes from £37 million to £33 million over this period.