Why we’re falling out of love with our pensions

Fewer than a third of investors think pensions are the best way to plan for retirement, a YouGov poll for Financial Planning Week has revealed.

The study, which was carried out in association with NS&I (National Savings & Investments), found just 36 per cent of men were confident that pensions were the best way forward, while women were even more wary, with only 23 per cent believing this to be the case.

Four professional investors explain what they think is causing this apprehension.


Nick Cann, Institute for Financial Planning

"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."


John Prout, retail customer director at NS&I

"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, Forty Two Wealth Management

"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 contribute 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

"The benefits of workplace savings and in particular good quality pension schemes are often overlooked 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."