‘Majority’ concerned about funding retirement

The majority of Britons appear concerned about funding their retirement, with only 18 per cent of people believing that £140 a week – the newly proposed amount for the state pension – is enough to live on.

According to Standard Life, 63 per cent consider the sum to be insufficient and, as such, may well be concerned about falling into debt later on in life, when it could be harder to resolve.

Head of pensions policy with the organisation John Lawson noted that more people must be encouraged to save by ensuring the right information, as well as advice and financial products, is accessible.

He suggested people budget every month and make sure they are paying the lowest amount for services such as home insurance and utilities.

"Set up a savings plan to put money away for your future needs. Pensions and ISAs are enough to meet the savings needs of 99 per cent of the population," Mr Lawson continued.

He also recommended pensions as the most tax-efficient option for saving money for retirement, while Isas are flexible and better for short-term plans, such as building up a deposit for property purchase.

However, according to Scottish Widows, debt worries are one of the principal causes preventing Britons from making financial plans, with 21 per cent stating they are too indebted to enact change.

It was also found that 33 per cent feel they lack the free time to carry out financial planning, with less than two hours a day available for such administrative tasks.

By Joe White