Pension savings fall further

Research by Scottish Widows reveals that the number of people saving sufficiently for retirement has fallen, as has the proportion of income being put away by regular savers.

The report, which “provides one of the starkest warnings yet” of the UK’s burgeoning pensions crisis, shows just 46 per cent of the population are saving adequately for retirement, compared to 55 per cent last year.

Moreover, the amount people are putting aside is also declining, with workers saving just 5.8 per cent of their income, down on 7.9 per cent last year and considerably short of Scottish Widow’s recommended figure of 12 per cent.

Ian Naismith, head of pensions market development at Scottish Widows, described the news as “very disappointing”.

“Our figures show that four in every five people who aren’t relying on a final-salary pension are failing to save adequately for their retirement, and that two in five are saving nothing at all,” he said.

Mr Naismith warned: “With this level of under-saving, no-one can be in any doubt about the challenge facing us all when it comes to preparing for retirement.”

Those struggling to clear debts are among the least-prepared savers, as are women and the self-employed.