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Findings show that 7.9 million people (29%) aren't saving anything for their retirement, while 4.3 million (16%) are not saving enough.
The survey also showed that for the first time,
the number of people in work-based Defined Contribution (DC) pension schemes has
overtaken those in private sector Defined Benefit (DB) schemes.
The industry trade body has also published research by Deloitte showing that one
in four employers would consider levelling down their current pension
contributions whn Personal Accounts are introduced. This represents rduced
pension provision for some 2.4 million employees.
4.7 million people (17%) are currently saving in a work-based Defined
Contribution pension, compared to 3.0 million (11%) in a private sector Defined
Benefit scheme.
Meanwhile, 44% of people believe it's unlikely that the Government's plans to
introduce a new system of Personal Accounts will occur. Only 30% believe it's
likely they'll do so.
Chris Kenny, the ABI's Director of Life and Pensions, said: "These major pieces
of research show that the broad direction of travel on pension reform is right.
"But there is still a long way to go both to encourage more saving and to get
the details of Personal Accounts right. Over 12 million people are still not
saving enough for their retirement, and many don't believe that the Government's
plans to increase saving will ever be enacted."
Further details are available from
www.abi.org.uk.
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