Private sector pensions ‘a ticking time bomb’
Nov 25 2009
Pensions a 'ticking bomb'
Only a third of private sector employees have a pension, according to research from the Chartered Institute for Personnel and Development (CIPD).
Some 36 per cent of private sector staff have a pension scheme, compared with 90 per cent of those who work in the public sector.
Charles Cotton, adviser at the CIPD, says: ‘That so few private sector employees are saving for retirement through the workplace is a ticking time bomb for the UK economy and society.
‘While auto-enrolment in 2012 is an important step in defusing this, more has to be done to get the message out to individuals that saving for retirement is essential, especially as the state pay-as-you-go pension becomes increasingly unsustainable in its current format.’
Of the 2,000 employees surveyed, 71 per cent say they intend to work past the state pension age, compared with only 40 per cent two years ago.
Research from insurer Prudential predicts that the number of people working beyond retirement age will double to 1.8 million by 2019.
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