Majority not putting enough aside for retirement

New research has found that over a half of people are failing to save adequately for their retirements.

According to a survey carried out by Friends Provident, the insurer, some 55 per cent of those polled believed they were not setting aside sufficient funds for the time they stop working or that they had not done so in the past.

Some 15 per cent conceded that they had made no plans for pensions provision, while almost a third (31 per cent) said they were dependent on receiving an inheritance in order to provide for their retirements.

Almost the same proportion (a third) of those still working predicted that they would need to remain in employment until they had saved enough funds on which to retire.

For nearly a quarter (23 per cent), future retirement plans involve moving to a smaller home or unlocking equity from their current property.

For 22 per cent 'hope' that they would have enough money for when they stop working formed the basis of their plans; 23 per cent had no idea what they would do to support themselves if their pensions proved inadequate.

Martin Palmer, who is head of corporate pensions 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 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."