Experts at Ludlow Wealth Management Group are warning that pensions should not be overlooked when it comes to planning for the future.
According to a report produced by Scottish Widows, 55 per cent of the UK population are not putting enough money into their pensions. A further 20 per cent are not saving anything for their retirement.
The situation for women is even more concerning because their pension funds tend to be lower. This may be due to either taking time off to raise children or making smaller contributions.
Ludlow’s consultants advise that having a proper pension in place can actually be one of the most effective ways to plan for the future and is still one of the best ways to save.
Diane Lang, consultant at Ludlow Wealth Management said: “Many people are put off getting a pension which can be attributed to mistaken views about them. In actual fact pensions are still a great way to ensure you have enough money to live on when you stop working.
“Savers don’t have to pay capital gains tax on a personal pension and the government provides tax relief on contributions. This means that for every £100 you pay into a personal pension, the government adds £20. A higher rate tax payer gets even more.”