A report from the Department of Work and Pensions into attitudes towards pensions has found that people do understand the benefits of saving, but cannot afford payments towards their pensions.
The report was designed to determine the most effective means of educating people about pensions and the importance of saving for retirement. They found that people's uptake of pensions depends on whether they believe they can afford to pay into one after paying other financial obligations. The Department of Work and Pensions have recommended that the report should be used by parties such as pension providers and advisers who need to get information on pensions to the public.
Our view
People cannot afford to save because they spend too much money elsewhere. How is it that someone can afford hundreds of pounds a month on car finance and a insurance but spends just a few pounds on pension?