Brits confused over pensions
(28 March 2007)

British consumers are confused over pensions and retirement plans according to new reports, with research finding that many people are unaware of details regarding pension contributions.

A survey conducted by HSBC found that 44 per cent of people believe that an individual needs to be in work to make pensions contributions, while only 36 per cent knew that other people can contribute to someone's pension.

These findings suggest that many workers in the UK are heading towards retirement with a lack of understanding over the nature of pensions in this country, potentially posing problems in later life.

It is thought that ignorance over pensions could be a contributing factor to a lack of preparation, following the finding that six in ten women are not contributing to a scheme.

Of this number, over 30 per cent state the fact that they are not working or working on a part-time basis as their reason for not making pension payments.

These trends are prompting concern over the future of many retirees, with Ian Martin of HSBC calling for greater efforts to ensure clarity.

"Despite efforts by both the government and the industry to generate more awareness around retirement planning, our research clearly shows that that there is still a lack of clarity over how to go about it - especially among women and particularly stay-at-home mums," he stated.

Recent research from the Alliance Trust Research Centre has indicated that Britons on low incomes are facing inflation that is 34 per cent higher than the headline measure.