More people planning to save for pensions, says research

The number of people planning to save for a pension has risen by 12% since 2009, according to the MoneyMood Survey from Legal and General.

One third (32%) of approximately 940 people polled in 2010 intend to save for a pension, a significant rise from the 20% who were considering it in 2009.

The percentage of men who say they are thinking of saving for a pension has doubled to 40% in 2010. This accounts for the majority of the increase since the figure for women has only risen from 20% to 25%.

The survey also credits the increase to those between the ages of 25 and 64, since the under-24s and over-65s have shown a decline year on year.

Claire Evans, Legal and General’s unit trusts marketing director said: ’It is encouraging to see such a healthy rise this year in the number of people thinking about saving for their long-term retirement income, particularly in the younger age groups.

“With the increase in ISA allowances across all ages from April 6 there are now more opportunities to save for the long term. Money saved in stocks and shares ISAs can be used to invest in a pension later in life with the continued potential to benefit from generous tax allowances from the government. The tax relief on pension contributions could boost the amount paid in to your pension by 20 per cent for basic rate income tax payers.”

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