More communication is needed to help people understand the benefits of saving for a pension at an early age, the National Association of Pension Funds (NAPF) as claimed.
According to the NAPF employees often mistakenly believe they cannot afford to make pension contributions as they are unaware of the help they will get from employer contributions and tax relief.
Mark Brooks, a spokesperson for the NAPF, said: "We need more communication, especially from the government and others about the benefits of saving for retirement.
"The point we always make is that saving for your old age is essential if you want a comfortable retirement."
His comments come after Research published by the Chartered Institute of Personnel and Development (CIPD) this week (November 24th) found that only 46 per cent of those surveyed had a pension with their current employer.
"There is an issue around people’s understanding of pensions and that’s why we want to see education about pensions as being a high priority," said Mr Brooks.
A recent study from Alliance & Leicester International (ALIL) put the cost of retirement in the UK at around £400,000 with people using several sources, including equity release, to generate a retirement fund.
Alternative sources of income for those who have not saved enough for pensions include equity release plans.
Posted by Claire Ford
