Greater efforts are needed to make saving a higher priority, it has been claimed.
Pensions minister Rosie Winterton has insisted that more action needs to be taken to help consumers understand the importance of saving for retirement. During a speech at an industry gathering, she said the current economic climate makes the issue more pressing than ever.
"I will be asking experts across the pensions industry to consider how together we can best reach out to consumers to talk to them in a sensible and helpful way about their pension and about pension saving," she stated.
The minister pointed out that until recently, marketing efforts by banks and other financial institutions encouraging consumers to take out loans and other forms of credit outstripped those persuading people to make savings by a ratio of three to one.
A shift in attitudes is therefore needed to remind consumers that making regular savings is one of the best ways to ensure a decent standard of living in retirement, she claimed. Accepting that people are not saving enough is the first step, but this needs to be followed by decisive action.
Her comments come after the Pensions Policy Institute published new research examining the advantages and disadvantages of allowing early access to pension savings. It has been suggested that permitting access to funds before retirement age in certain circumstances could encourage more people to save.
