In a study conducted for the giant investment firm Aegon a surprising number of people surveyed expressed distrust and dissatisfaction with saving through pension plans or other long-term saving vehicles and showed preference for investments in real estate and similar investment strategies.
Participants in the study believe that pension funds are old-fashioned and even worse; they showed a marked distrust of the government and financial institutions.
The 20-page conclusion of the study described a situation where people showed low understanding of the savings plans offered and also a lack of awareness about how the tax system works. The report describes employers as the ‘unsung heroes’ who are often the ones who explain what pension plans are about and persuade their employees to save in them.
Jackie Wells, a consultant for Aegon, said: “There was a strong sense of anger and fear about retirement and savings and a distrust of financial institutions and government. One person picked the word ‘terror’ to describe his view on long-term saving.”