A survey which was commissioned by Norwich Union and conducted by Mori has found that nearly 40% of people who earn between £10,000 and £25,000 have not heard of Stakeholder Pensions.
Stakeholder pensions were launched by the Government just 12 months ago to promote the idea of people saving more for their retirement. In simple terms, they are a new, low charging type pension scheme with no penalties and the idea is to have no "small print". To find out more about Stakeholder visit the Stakeholder Cafe.com.
Awareness was higher for higher earners but is the average and lower earners category that concern the government. Many in this category make little or no provision for their retirement. The survey found that less than a third of people in the £10,000 to £25,000 category planned to make use of new stakeholder rules. This is concerning given that over 40% of people in this category have no provision for pension whatsoever.
Our view
Ask yourself this question - Do I think that the Government will really look after me when I retire? If the answer is "no" then you may have serious financial problems in later life. Our view is that all people should plan for retirement, even children and grandparents can now save in Stakeholder pensions!
To find out more about retirement planning please do visit: Stakeholder Cafe.com or Pensions Adviser.com.