Finance Choices
5 million Britons reject company pensions!
More than one in four British employees have not, or will not, join their company pension scheme, costing them more than £3 billion a year.
That is according to a new study by insurance giants AXA, which pointed out that many of the schemes people are avoiding see employers pay money in on the workers' behalf.
"Our study reveals that the majority of people who are members of occupational pension schemes benefit from contributions paid into these schemes by their employers and in many cases these contributions are equivalent to five per cent or more of their annual income," said Mark Rowlands of AXA.
"By failing to join company pension schemes British workers are losing out financially. My conservative guess is that they could be losing out by as much as £3 billion per year and probably significantly more," he added.
Sixty-three per cent of those who belong to company schemes said they knew their employer paid into the fund on their behalf, with one company pension member in four saying their employer pays between five and ten per cent of their salary into the fund.
But AXA found that of those who did not pay into occupational pensions, one in nine said they could not afford to join, seven per cent said there was no point as they were too old and another seven per cent said they did not know how to join. 13 per cent of respondents said they had no faith in pensions at all.
"The harsh reality is that the state pension is unlikely to provide a sufficient income to enable most people to enjoy a comfortable retirement," AXA's Mr Rowlands commented.
"We strongly encourage people to review their retirement planning and joining an occupational pension scheme could be an excellent way for British workers to boost their retirement income."
With the population ageing it is more and more important that people start to think and plan for their retirement. By ignoring such obvious steps as your company pension it is surely a time bomb ticking away waiting to go off.
There are many options available to you to put some money away for your retirement and there is never a better time to start planning than right now.
That is according to a new study by insurance giants AXA, which pointed out that many of the schemes people are avoiding see employers pay money in on the workers' behalf.
"Our study reveals that the majority of people who are members of occupational pension schemes benefit from contributions paid into these schemes by their employers and in many cases these contributions are equivalent to five per cent or more of their annual income," said Mark Rowlands of AXA.
"By failing to join company pension schemes British workers are losing out financially. My conservative guess is that they could be losing out by as much as £3 billion per year and probably significantly more," he added.
Sixty-three per cent of those who belong to company schemes said they knew their employer paid into the fund on their behalf, with one company pension member in four saying their employer pays between five and ten per cent of their salary into the fund.
But AXA found that of those who did not pay into occupational pensions, one in nine said they could not afford to join, seven per cent said there was no point as they were too old and another seven per cent said they did not know how to join. 13 per cent of respondents said they had no faith in pensions at all.
"The harsh reality is that the state pension is unlikely to provide a sufficient income to enable most people to enjoy a comfortable retirement," AXA's Mr Rowlands commented.
"We strongly encourage people to review their retirement planning and joining an occupational pension scheme could be an excellent way for British workers to boost their retirement income."
With the population ageing it is more and more important that people start to think and plan for their retirement. By ignoring such obvious steps as your company pension it is surely a time bomb ticking away waiting to go off.
There are many options available to you to put some money away for your retirement and there is never a better time to start planning than right now.
posted by Bruce Wayne at 5:43 PM
5 million Britons reject company pensions!
1 Comments:
I can't believe that people aren't looking to take care of themselves financially in their old age.
It's well known that we're going to live longer than our parents yet we're not looking to secure ourselves financially for this future.
Some really ugly times ahead for alot of people. I just hope I don't end up carrying the can for the irresponsbile as they rifle money from my pension!
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