Just 29% of people have confidence that contributing to pension plans is the best way to save for their retirement.That's according to a YouGov poll* carried out in association with NS&I (National Savings & Investments) for Financial Planning Week (21-27 November), which is being run by the Institute of Financial Planning (IFP).
The Institute of Financial Planning (IFP) is running a series of daily polls with consumers throughout Financial Planning Week to find out what people are thinking when it comes to their money - and how they are coping with their personal finances during these uncertain times. Today's poll looks at the public's attitude to whether or not pension plans are the best way to build up funds for their retirement. Only 36% of men were confident that pensions were the best way forward, while women are even more wary - with only 23% believing this to be the case.
Nick Cann, CEO of IFP comments: "We can either sit back and continue to be concerned about today's findings, or we can call on the Government to make planning for retirement more relevant and interesting for today's society. People are clearly very nervous about committing to long term savings with no access to any of the capital that is being built up. Now is the opportunity to build greater flexibility and incentive into long term savings, to help people avoid financial disaster in retirement. "
Pete Matthew CFPCM , creator of Meaningfulmoney.TV comments "In today's live online broadcast at 12.30pm, which people can access by visiting www.meaningfulmoney.tv I'll be talking about pensions and retirement and putting forward some ideas - including alternatives to pensions that people can think about when it comes to planning their all-important retirement. Financial planning needn't be complicated. For most of us it simply means consistently putting into practice some basic principles and this is something that financial planners are able to help people to do."
John Prout, Retail Customer Director at NS&I, comments: "It is disappointing that many people remain unconvinced of the long-term benefit of regularly putting money aside into pensions for their retirement. Developing a habit for saving is the best way to maximise income in retirement and it is important that this message is repeated to every person of working age."
Alan Dick CFPCM, of Forty Two Wealth Management in Glasgow comments: "It is worrying that over two thirds of the population appear to have completely disengaged with pensions. Governments' constant tinkering with pension legislation and the perceived complexity undoubtedly contributes to this distrust. I would hope that people are not taking the ‘ostrich' approach to financial planning by burying their heads in the sand but instead are making genuine alternative arrangements in saving for their retirement using other investment vehicles. Most people seriously underestimate just how much money they will need to build up in order to live a comfortable retirement and also how long their savings will be required to support them."
Martin Palmer, head of corporate benefits marketing, Friends Life comments: "The benefits of workplace savings and in particular good, quality pension schemes are often over-looked as an optimum way to save for retirement and today's poll confirms that lack of confidence when it comes to pensions. Financial education through the workplace will help and many employers are looking at this as a way to improve the appreciation of the benefits they offer, but we still have a way to go to convince people that saving more now for a financially secure retirement later is worth doing - especially in the current economic climate."
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