Personal pension provisions to become biggest retirement source by 2006
Wednesday, November 16, 2005
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The company says that by 2006 personal pension provisions will have overtaken the state pension in terms of where the majority of pension income comes from.
The Pru-Datamonitor report on the pension system shows that by next year, provision from the state pension will drop below 50 per cent of total pension provision.
"This is a significant moment for retirement provision in the UK," said Ali Crossley, director for lifetime mortgages at Pru UK.
"We are fast approaching the point in time when the state ceases to provide the majority of UK retirement income and the onus of retirement funding will pass to the individual."
In 10 years time, the report says, the state will contribute just 44 pence to the pension pound, with the rest coming from other pension sources, such as private and occupational pension plans, and savings.
Ms Crossley stressed the need for adequate pension and retirement planning, saying: "People need to think about how much they need and when."
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http://www.europinions-finance.co.uk/pensions/pensions/
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