Half of Brits have no pension - study

Almost half of the entire UK population is not saving for a pension, research from YouGov suggests.

The study, commissioned by the investment trust manager Baillie Gifford, found 45% of more than 2,000 adult respondents have no arrangements in place despite growing fears surrounding a lack of funds in retirement.

It also suggests 9% of people are reducing or freezing their monthly pension payments in an effort to free up money for mortgages, bills and daily expenses.

Chris Fletcher, head of retail investments at Baillie Gifford, describes the study's findings as "concerning".

“The rise in life expectancy means people should start saving younger than ever before," he says. "The cost of delay may well reduce the amount they will receive in their old age, if only due to the effects of reinvesting smaller or fewer dividends over time.”

Baillie Gifford is launching a free guide: ‘Investing for Retirement,’ which explains how investment trusts can help build a retirement fund. It aims to encourage people to start planning for retirement immediately.

“By making regular payments into their pension fund, they could be able to maintain a retired lifestyle nearer to the one they enjoy during their working years,” Fletcher adds.

Factors affecting investments over the long-term need careful thought in today’s rapidly changing economy, he says. The guide contains a glossary of financial jargon and names of helpful, unbiased websites, providing accessible information on investing for retirement.

Other guides in the Baillie Gifford Investment Trusts series are: Understanding Investment Trusts and Investing for Children. All three guides are available from Baillie Gifford’s Client Relations Team on: 0800 027 0133.