Is the pension market set to change?

Following the Conservative party’s assertion that, should it win at the next general election, it will raise the age people can draw on their state pension, could the retirement industry be set to change in a way which affects retention?

New research from the Chartered Institute of Personnel and Development, has revealed an insight into the pensions market, showing the attitude people have towards such finances.

It was revealed in the research that only one in four (28 per cent) private sector employees knows how much they should be saving for a comfortable retirement.

And 31 per cent of employees not saving into a pension cited financial constraints as a major reason.

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But with the Conservatives announcing plans to raise the pension age higher, HR department may wish to advise staff of the importance of starting to save early.

Commenting on the news, Steve Rumbles, spokesperson for BlackRock, said: “The underlying theme that comes through, particularly around personal accounts … in an unwritten basis, is the lack of understanding around the pay as you go state pension scheme and how it works.”