Pension confidence up

Confidence amongst Britons over their annual retirement income rose ten per cent this year, according to new research, despite widely held fears of a

16:03 21 December 2004

Confidence amongst Britons over their annual retirement income rose ten per cent this year, according to new research, despite widely held fears of a pensions crisis.

Research by JP Morgan Fleming (JPMF), in its latest Pension Map of Britain, report found the annual expected pension has climbed to 20,540 pa in 2004, up from 18,914 in 2003.

Supporting this argument, JPMF found half of UK workers this year have been concerned about the level of retirement income, as opposed the higher level to 56 per cent recorded in 2003.

People in the higher earnings bracket of 30,000 pa are among the most pessimistic showing a 4.1 per cent drop on the year, while lower wage earners (less than 17,500) reveal higher expectations, rising by 12.1 per cent from last year's figures.

Using age as criteria, those workers aged between 21-24 are most optimistic and expect to have an annual retirement income of 28,901, while people in the 45-54-age bracket think 19,228 is sufficient.

Nicola Bruns, investment trust marketing manager at JP Morgan Fleming says the UK workforce is increasingly optimistic about retiring, especially the younger and lower paid, with the Government pushing towards a change in attitudes.

"However, we know that pension payouts look set to shrink, so if we are to enjoy today's standards of retirement, let alone improve on it, saving for retirement needs to become a priority and pensions are still the most tax-efficient way to save for retirement," she said.