Cars and jewellery more important to Brits than a pension fund, survey indicates

News - Funds

Written by Ray Clancy

Wednesday, 16 June 2010 08:41

Saving for the future is way down on the list of priorities for many British people who value cars and jewellery more highly than a pension fund, research shows.

UK consumers admit to caring about their car as soon as it is worth over £4,000 and jewellery once worth more than £2,000, but would need a pension to be worth more than £15,000 before they would feel the same, the research from Standard Life indicates.

Almost a quarter, 23%, of consumers admit that they simply don’t care about their pension, some 32% of those with a pension admit that they don’t know where it is invested and 10% have not reviewed their pension since it was set up.

The lack of interest in financial assets is not just about long term savings products such as pension funds. Two thirds of the population, 63%, said they would need to have more than £10,000 in any type of savings before they would seek financial advice on how to invest.

Reinforcing gender stereotypes, of those with a pension, women were found to care more for their jewellery then their pension fund. Men, in contrast, were found to care as much for their pension as they did their car.

‘Our car and the jewellery we have at home are some of the most immediate assets we possess and the extent we care about them increases as they become more valuable. However, these assets are often worth a fraction of the savings that people have which have the potential to secure their financial future. It’s shocking that a pension has to be eight times the value of the jewellery people own before they care about it,’ said Mark Polson, Head of Customer Management at Standard Life.

‘By taking an active interest in your finances, such as investing in long term savings products and staying engaged, your money can work harder for your future, It’s time to reality check our attitudes to saving,’ he added.

A separate study from Prudential shows that 35% of women compared to 29% of men will have a retirement income below the poverty line of £14,000 or less a year. The gender gap becomes even more stark over the age of 65 where 42% of women over 65 will have incomes below the poverty line compared with 33% of men.

The findings reinforce the need for women to take pension savings and retirement planning matters into their own hands, according to Vince Smith-Hughes, Prudential’s head of business development for pensions.

‘Women are more likely to take a career break when they start a family and possibly the last thing on your mind when you’re taking care of children and the home is how you’re going to fund your retirement years. But as these figures clearly demonstrate those years out of work do have an impact,’ he added.