One in four adults will save more in a pension following changes announced in the Chancellor’s Budget in March, according to research from Legal & General, with younger savers most likely to save more.
The research, conducted amongst 578 adults already saving in a company or individual pension found 48 per cent of 18 to 24 year olds said they were more likely to save more as a result of the removal of the requirement to buy an annuity, compared to 24 per cent across all age groups.
The 25 to 34 year age group were next most likely to save more, with 40 per cent confirming they would do so.
The research also found that women are significantly more likely to save in a pension since auto-enrolment started, with 28 per cent now saying they are ‘thinking of saving in a pension, compared to 20 per cent in April 2012. The number of men ‘thinking of saving in a pension has fallen over the period from 37 per cent to 32 per cent.
L&G corporate MD, marketing and distribution Helen Buchanan says: “The positive response among young pension savers to the pension flexibility introduced in the budget is a fantastic result. The chancellor appears to have achieved the impossible and created a pension system that appeals to those under 35 who, until now, were the age group who tended to put off saving for their retirement.
“For the Department for Work and Pension’s automatic enrolment process there is also good news.
“The prime target for the campaign, the under 45s, appear to be ‘nudging’ towards saving in a pension. And it’s encouraging to see indications that pension saving is now higher on the agenda for those aged 55 to 64 too.”