The number of people saving for a pension rises

The number of people who say they're saving for a pension has shown a significant rise according to figures in the latest Legal and General MoneyMood Survey indicating a positive return to saving for the longer-term.

The figures show that 1 in 3 (36%) people say they're thinking of saving for a pension - up a third in the last six months (August 2010 = 27%).

The lion's share of the increase appears to be among the 35 to 44 age group. This may have been influenced by the increased publicity in recent months surrounding the changes to retirement age, which will potentially have an impact on both men and women who will be retiring in 20 to 30 years time.

Continued turmoil for the economy and news of increasing job losses may be encouraging people to save. This month one in four (25 %) say that they plan to add to their savings over the next 4 weeks.  Last month MoneyMood reported that the number of people who say they're in the mood to save had risen to 69 per cent, the highest level since the measurement began six years ago.

Mark Gregory, Legal & General Executive Director Savings comments; "It is encouraging to see such a healthy rise this year in the number of people thinking about saving for their long-term retirement income. The number of people who say they're saving for a pension is up in almost all parts of the country with central regions showing the biggest increase. London is the only region to have fallen back on its results 6 months ago."

Mark added: "The announcement of Government proposals to introduce a flat rate state pension may also be helping to focus savers thoughts on their retirement. Those who are looking forward to an income higher than the state pension are more likely to appreciate that the sooner they start saving the better, as their money has longer to enjoy investment growth."