Pension fund contributions 'not enough'

People are not paying enough money into pension funds, research has found.

According to the Fair Investment Company, the average Britain puts four per cent of their earnings towards their pension, but it notes that this is far below the recommended amount.

The organisations states that a recommended rule of thumb is for a person to contribute a percentage that is half the age they were when they started paying in.

And as a gender gap is emerging, with women contributing four per cent compared to men's six, chartered financial planner Sharon Bentley predicted that consumers would face difficulty in retirement.

"The results suggest that future pensioners are going to struggle to survive on their pension annuities, as between four and six per cent of earnings is not a sufficient pension contribution," she remarked.

Earlier this week Scottish Widows found that just 46 per cent of women that earn over £10,000 are saving adequately for retirement.

Published on: October 16, 2008

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