Scottish Widows: Half the population not saving enough for retirement

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Scottish Widows: Half the population not saving enough for retirement

Wed 9th Jul 2008

Nearly half the nation (49 per cent) is not saving adequately for retirement, Scottish Widows has warned.

The Scottish Widows 2008 pensions survey found that 41 per cent of people felt better off five years ago than they do now.

Ian Naismith, head of pensions, warned that unless people provide properly for retirement, it would bring "a very sharp drop" in living standards.

He called for everyone to establish an "emergency fund" for unexpected happenings and noted that some people do not earn enough to save.

Luxuries such as foreign holidays or new cars could be dropped or put off, he suggested.

While half of people are saving enough ,"the other half needs to wake up".

Mr Naismith warned that in retirement, the government will provide only "the real basics" and that employers are "doing less than they ever have in the past, improvising pensions for their staff".

Life Trust Insurance's 2008 Cost of Retirement report found that retirement in the UK costs a typical household £413,000, or £326,700 for an individual living alone.

Increasing longevity is one factor increasing the cost of retirement.

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