Not enough people are saving, says expert

30 March 2010

The "most fundamental" problem in regards to pensions is that not enough people are saving.

This is the view of investment manager Hargreaves Lansdown, which said even those who are saving are not putting enough aside.

It follows yesterday's (March 29th) call from the National Association of Pension Funds for the creation of a permanent independent retirement savings commission, which would "take the politics out of pensions".

This call was welcomed by Tom McPhail, head of pensions research at Hargreaves Lansdown, who said the current system "isn't fit for purpose".

"Removing the politics from pensions provision would be a good place to start," he said.

"There should be some sort of semi-permanent pensions provision body. Even if it's not on a constant basis but maybe to meet periodically to provide independent analysis of the pensions system – would be highly desirable."

People who are concerned about the current state of the pensions system could be encouraged to seek out additional ways of funding their retirement.

Schemes such as equity release can boost a homeowner's retirement income with funds taken from the value of their home.