Fewer UK Workers Save for Retirement

The latest data revealed by HM Revenue and Customs suggests that pension contributions have decreased because the British economy still imposes significant pressures on people, who try to make ends meet.

In the 2009-2010 tax year, contributions in personal and stakeholder pensions fell by more than 1 billion as 430,000 UK Brits chose not to put money into pension savings. This resulted in 18.2 billion worth of pension contributions, which compares to 19.26 billion a year ago.

Financial experts are determined that most workers prefer to use the funds they previously put away for pension without realising the importance of retirement savings. Some of those who stopped investing into personal or stakeholder pensions might have switched to another savings option, which allows for easier access to money.

Let us remind that the UK government is to enforce new pension rules soon. According to them, employers will be obliged to pay either into National Employment Savings Trust (NEST) or into private employee pension schemes.

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