UK 'is sitting on pensions' time bomb'

Tuesday, June 1st 2010

A lack of interest in pensions among UK workers means the country is sitting on a "time bomb", according to an expert.

Keith Churchouse, director of Churchouse Financial Planning, warns adults their future is dependent on an ability to save now.

"People won't be able to afford to retire because they just paid no interest to pensions," he explains.

Mr Churchouse adds "a lot of people" have simply walked away from their pension problem instead of addressing it.

Research last week by Aon Consulting showed only 12 per cent of Britons in employment take an interest in their pension, while 35 per cent do not save for later life at all.

This puts the UK significantly behind other European countries when it comes to planning for old age, with 37 per cent of Germans already actively saving.

Independent policy adviser Dr Ros Altmann recently noted the basic state pension increase proposed by the new coalition government is good news for Britons.