Research from Watson Wyatt has shown that a private pension is the preferred way of saving additional savings. The survey found that 39% of respondents would buy a pension plan if they had an extra £200 a month to spend on retirement. Thirty eight per cent of people would spend their money on ISAs, while 19% would invest in property and 14% would leave their money in a bank account.
Our view
This is what most people believe they would do, the reality if is that people who do get that extra £200 per month buy bigger cars and go on holiday to far away places.
The only way to encourage people to save for retirement is to make pensions compulsory. This is what is coming in the form of the National Pensions Savings Scheme.
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