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04-Jun-08 10:15 [Pensions]
Many failing with pension fund contributions People are relying more heavily on savings than pensions for their old age, according to a financial advisor.
Churchouse Financial Planning claims that even when the personal accounts system is introduced in 2012 there will still be people who opt out of making pension fund contributions.
It asserts that the current financial turmoil means that those on lower incomes cannot spare any of their earnings for pension funds, as it represents the difference between being able to feed a family or not.
Keith Churchouse, director of Churchouse Financial Planning, said: "With personal accounts, you can still opt out of them, and I am sure there will be people who will still opt out of them and in doing so they will still be reliant on the state when they get to retirement."
It is currently estimated that the average household can expect to receive 42 per cent of its working income when they stop working full-time.
For a household on the average national income of £22,900, this would equate to an annual retirement income of £9,618, which is less than £30 a day.
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