Brits confess they’re clueless about private pensions

As ElderCare Week begins (7 September 2009) Friends Provident is urging Brits to become more aware of the issues faced by older people and the need to plan ahead for retirement.

The warning comes following research from Friends Provident that showed more than half (58%) of UK adults don't even know how to set up a private pension.

The research findings also built a disquieting picture of retirement in the future with over half (55%) of UK adults either thinking they are currently not saving enough or facing the reality they have not saved enough towards their retirement. On top of this 15% have not given any thought to their retirement plans at all and 31% are relying on receiving an inheritance to help fund their retirement.

Of those who have yet to retire, 28% revealed that they would continue to work until they had enough money to do so and 23% would downsize their property or use an equity release plan. In stark contrast 22%, are ‘just hoping' they will have enough and 21% don't have any plans regarding how they would support themselves financially if they reached retirement age without a big enough pot of money.

Martin Palmer, head of corporate pensions marketing at Friends Provident, said: "The research findings make grim reading. Today more than ever, it is vital that people take the time to understand the issues facing older generations in the UK - particularly the financial ones.

The issues are not simply going to disappear but the hope is that by being more aware of these financial pressures we can start to equip ourselves for later years."

"By tackling retirement planning as early as possible and having an increased personal level of awareness of the financial stability needed in retirement, people will be able to enjoy their retirement and not spend time worrying about money."

Research from Friends Provident also shows that;

25% of UK adults are concerned about the impact of the current climate on their retirement savings

Three quarters (75%) of UK adults don't think the Government is educating people appropriately on the importance of saving for retirement

38% of UK adults are planning to fund or already fund their retirement through the state pension of £95.25 a week