Britons 'rely on state pensions over own plans'

Thursday, March 18 2010

Many people are relying on the prospect of state pensions rather than taking out individual plans.

This is according to research from Safe Home Income Plans (SHIP), which found that only seven per cent of Britons think they will be able to afford an independent retirement.

Some 61 per cent of those quizzed said the state pension would fund their retirement and 35 per cent revealed they would rely on a private pension.

Director general of SHIP Andrea Rozario said: "It is clear that many people are living in a retirement funding daydream. They aren't saving enough money, they aren't consulting financial advisers and they aren't talking about their options."

And by 2030 there will be more over 65s than ever before, making it difficult to fund the amount of pensions required, it was added.

The research also discovered 91 per cent of participants who agreed it was their own responsibility to create financial stability in retirement, although 34 per cent have no regular pension plan.

Launched in 1991, SHIP aims to protect consumers and aims to increase awareness of equity release options.