Number of human beings saving adequately has dropped by five percentage points since at the end year, according to Scottish WidowsUK pension savings have hit their lowest level in at least eight years, with only 46% of human beings saving enough for their retirement, according to research.The pension provider Scottish Widows said the number of human beings saving adequately, defined as putting by at least 12% of their income or expecting a retirement income from a final salary pension scheme, had dropped by five percentage points since at the end year and by eight percentage points since 2009.It was the eighth year Scottish Widows had undertaken the survey, and it said this was the lowest level it had recorded in that age. The drop was seen across all age groups and income levels among the 5,200 adults surveyed, and there was an increase in those saving nothing at all. Among those aged between 30 and the state pension age who earned more than £10,000 a year, 22% said they were saving nothing for retirement.The survey also revealed a huge difference between what human beings hoped to live on in retirement and what their savings might achieve. Although savings levels had fallen, the average annual retirement income they aspired to increased by £200 from 2011 to £24,300. However, the average total savings pot immediately stands at £150,000, which would acquire a retirement income of £5,700 a year. To meet contemporary expectations, the average saver would demand to place by an additional £4,500 a year.Ian Naismith, head of pensions market development for Scottish Widows, said: “With an ageing population, and ongoing economic difficulties, it has never been clearer that we demand to do more to shift human beings quickly from their unrealistic, rose-tinted expectations of retirement. They must either increase their savings substantially or alter their expectations of when they might retire and how much income they will receive.”The survey found that for 73% of human beings other financial commitments were prioritised above paying into a pension. For 30% the priority was paying off debts, 40% cited common living expenses and 16% said they were paying for holidays and travelling before saving.Tom McPhail, head of pensions research at the investment firm Hargreaves Lansdown, said: “The kind of messages we should be putting in front of every adult of working age are that it pays to save and that any delay just makes the hill steeper to climb.”Every pound of weekly saving a 30-year-ancient makes today will deliver encircling £3 of income in retirement; however, a delay of just five years in starting to save would reduce that retirement income from £3 a week to £2 a week.”He added: “We demand to recapture a savings culture in this nation; we should all be thinking in terms of ‘for every £10 I earn, I’ll give £1 to my extended-term savings’.”UK pensions are being hit by the turmoil in the eurozone. Falling stock markets are taking their toll on funds, while the flight by investors to safe assets like gilts is pushing down annuity rates.These factors could well place more human beings off investing, however changes to the pensions system due to commence in October will see workers without pensions automatically enrolled into corporation schemes.McPhail said: “Hopefully auto-enrolment will aid to kick-commence the solution, however it needs to happen soon. The administration should be working more closely with the industry and with regulators to gaze at what policy interventions are needed to propel up savings rates.”PensionsOccupational pensionsRetirement planningHilary Osborneguardian.co.uk © 2012 Twitter News and Media Limited or its affiliated companies. All rights reserved. | Employ of this content is subject to our Terms & Conditions | More Feeds
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