Huge numbers failing to save for retirement

Almost two out of three private sector employees are not saving for a pension, official figures have revealed.

The Office for National Statistics (ONS) has reported that 62.9 per cent of workers in the private sector are not contributing to an occupational pension scheme.

The proportion of employees in final salary pension schemes is down to 2 million out of a total workforce of 22 million.

A separate survey for the Association of British Insurers found that increasing numbers of people do not see the benefits of saving.

Some 60 per cent of those polled who are not currently saving said that they thought the benefits of setting money aside have declined during the past year.

The government is planning to phase in a compulsory workplace pension scheme as from 2012.

Workers will be automatically enrolled in the scheme where there is no existing occupational pension scheme for them to join.