Brits Have Poor Pensions

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Brits Have Poor Pensions

Sky News, Monday April 14, 2003

The vast majority of people in the UK are not saving enough to pay for the sort of lifestyle they expect in retirement, it is being claimed.

A newly-published Institute of Directors report blames both the Government and individuals for the number of "under pensioned" people in the country.

But the business organisation has rejected calls from some quarters for compulsory employer contributions.

It says they would be an "additional burden" on employers and could lead to "levelling down" with companies paying only the bare minimum.

It also says it is not convinced that raising the retirement age would solve the problem - but has called for a debate on the issue.

The institute's report blames a combination of factors for the situation.

These include inadequate savings, falling stock markets, and lower rates of return based on the fact that people are living longer.

Ruth Lea, head of the IoD's policy unit said: "There is a pensions crisis in this country in the sense that the vast majority of people do not have enough pension provision to fund the sort of lifestyle they would wish to lead in retirement."