Short term saving rises at the expense of pensions
by Richard Kilner
People are saving more than spending due to worries about job losses and economic woe, according to the latest MoneyMood Survey from Legal & General.
Six out of ten are presently saving, with just 23% (less than a quarter) spending, but despite this the number saving for a pension has declined over the last six months.
Legal & General Executive Director Savings Mark Gregory has said he considers it disturbing that just 27% are saving for a pension, with only London increasing the proportion saving for retirement (to 50%).
Gregory went on to stress the importance of long term saving, and argued it should not be neglected in favour of short term saving.
Earlier this month Baring Asset Management stated that 47% of women have no pension plan, and that a fifth of adults aged 55 to 64 have no pension pot.
Barings’ chief investment officer, Marino Valensise, opined that in the future retirement will be seen as more of a luxury than a right.