State pension could be considered inadequate
(18 April 2007)

The state pension alone would be considered "inadequate" by many people as a retirement income, it has been claimed.

Although the pension is a "guaranteed payment", it may not be enough to cover the retiree's financial needs, according to the Association of British Insurers (ABI).

The group suggested that young professionals should start investing in a private pension scheme in order to receive a greater return.

Jonathan French, spokesperson for the ABI, said: "You can never be too young to start saving for a pension.

"Pensions are of course, by their very nature, long-term investments - and long-term investments, generally speaking, have a very good record for providing excellent returns."

He added that most employers will offer a pension scheme through the workplace and that there is a variety of different types of scheme available.

Meanwhile, the Pensions Policy Institute commented that the state pension is a "reasonable foundation" for additional schemes to be built on.