-- Research confirms growing absence of pensions --


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Barings research has found 13.6m of British adults do not have a pension, making it likely that they could have to work well into their retirement age.

The investment management firm found that 1.4m people who are 55 and older do not have a pension in place. Marino Valensise, chief investment officer for Baring Asset Management, said it is worrying that 47 per cent of 25 to 34-year-olds have not started saving into a pension – an age that is considered critical in terms of establishing the foundations of a pension fund.

Mr Valensise, added: "Having such a large number of people without any form of pension provision is very worrying. It is highly likely that for those approaching retirement age, continuing to work indefinitely will be mandatory given they have no other income streams.

"At the same time, it is concerning to learn that only half of people in their late 20s and early 30s are contributing into a pension scheme. Kick-starting a pension around this time is absolutely paramount given the impact it has on the end sum. Investing into a pension little and often is a much better approach than not at all.

"From those who do have a pension, 11.7m of working people have a final salary pension provision in place, while 6.6m, are in a defined contribution arrangement.

Credencis say: "The 1.4m over-55s probably can't afford contributions and so will have to rely on the state pension. The younger age group will be retired for a long time and need to start saving now. University debts and saving for a property are more urgent priorities and these are the reasons they are not saving for their pension.

Source: Barings

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Views expressed by our author, are the personal views of the author alone, and are not intended in anyway to be construed as advice.They should only be used as guidance and are not necessarily suited to the personal circumstances of every individual in the UK.If you are interested in seeking advice further then please contact Credencis direct.