Professionals warned against pensions complacency

While the sales of Self-Invested Personal Pensions (SIPPs) have grown at a fast rate in recent times, confidence in pensions in general is at a low ebb, one expert has said.

According to Pensions Management Magazine, the media focus on collapsing company pensions and alleged Government raids on pension savings has damaged the public's confidence.

But the publication warned against complacency and said that professionals need to consider saving for the future, which could involve taking out a SIPP or an Individual Savings Account (ISA).

Ruth Emery, assistant editor the magazine, said: "People do need to start thinking about saving from an early age.

"If they don't want a pension, at least choose an ISA, as when they reach retirement they could be spending 30 or even 40 years as a pensioner."

According to the Office for National Statistics, occupational pensions account for a quarter of all pensions, while personal pensions accounted for three per cent.

Source material: Adfero, October 4 2007.

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