As if news regarding the lack of money being saved into pensions wasn't bad enough, the Government has admitted the figures were inflated.
According to the Secretary of State for Work and Pensions, Andrew Smith, the figures showing the amount people save towards retirement has been exaggerated by £35bn a year! Instead of the figure of £86bn thought to be the total saved last year, Mr Smith admitted the figure was more likely to be £51bn.
Apparently, the figures compiled by the Office for National Statistics included transfers between pensions and not just money being saved into them. The difference between the figures is huge with Government already worried about not enough money being saved. Now that this figure has been reduced by £35bn, some fast re-thinking will have to be done regarding how to close the 'savings gap'.
See the related, archived article on "Pension Shock".