Britain is facing ‘pensions time bomb,’ new survey warns

The research revealed the nation’s lack of planning for retirement, with 36% of respondents aged 51-60 and 66% of 20-24 year olds admitting they have no pension provision.

The dataalso found that 30% of those surveyed were not sure if their pension pot would be enough to live on, while 24% surveyed said they were too young to even think about a pension.

Lindsay Melvin, CIPP CEO, said: “The surveypaints a worrying picture for the coming years, as the pressure of looking after an ageing population increases, alongside the added burden of a lack of financial independence. It creates a financial time bomb. 

“In these uncertain economic times we would hope most people are thinking about their future, but these results show over a third of those towards the end of their working lives are not planning financially for their retirement and some are not even sure they will have enough to live on. With the government putting pensions at the forefront of its agenda it’s even more disturbing that so many people are taking a relaxed attitude.”

The survey resultswere revealed today as part of CIPP’s annual National Payroll Week, wish seeks to shine a light on the role payroll can play in educating the nation.

The initiative encourages payroll professionals to think about how they can improve the financial understanding and wellbeing of their colleagues. 

Ian Dowd, marketing director at NGA Human Resources, said: “NPW is the perfect time for companies to look at where they stand in applying automatic enrolment legislation and evaluate the role payroll plays within their organisations.

“Payroll should be about much more than just making sure salaries are paid on time. This week, payroll professionals are encouraged to demonstrate their role within financial education and the wellbeing of employees. So it's a great opportunity to show the positive impact payroll can have on employees and on the nation.”