According to its survey, 12 million people have poor debt management because they are not saving enough for retirement.
Chris Kenny, the ABI’s director of life and pensions, said: “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.”
He called on the government to bolster private pension provision to ensure that people see it as a good debt management option.
However, consumer watchdog Which? hit out at the claims, saying that it was “staggering” that insurers were “undermining” the government’s reform plans.
Personal finance campaigner Doug Taylor said that insurers need to regain consumer trust in the industry.
Only then, he says, it be taken seriously as a debt management option, allowing people to have a comfortable retirement.