The most recent pension report from Scottish Widows has revealed worrying figures which show that around 22% of individuals between the ages of 30 and state pension age and earning at least £10,000 per annum were not setting aside any money for their retirement.
Whilst £10,000 may seem like a low enough amount already without accounting for a pension, the amount of non-savers in this group has actually increase by 20% since last year.
The pension provider has said that with every year there seems to be an increase in the number of people not setting up a pension fund. In addition, of those who do have a pension fund only 46% are saving enough.
Scottish Widows believe that part of the problem is that peoples expectations are too high, with most savers ambitiously believing they will end up with twice as much as they are realistically likely to receive based on their current savings.
“People are saving less for old age yet their expectations remain high as the majority fail to recognise the harsh reality of retirement,” said Ian Naismith from Scottish Widows.
In order prevent the number of individuals without pensions from escalating further, from October this year the government is introducing an automatic enrolment system into a pension for employees.
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