Press Release

Slow growth in long term savings shows urgent need for pension reform

The ABI’s latest new business figures, for the first quarter of 2005, show a mixed picture on pensions and long-term savings. Overall sales of life and pensions products were £2.49bn, up 2.8% on the equivalent quarter in 2004. However, sales of workplace pensions fell to £183m – down 3.5%.

Chris Kenny, ABI Director of Life and Pensions, said:

“The pensions and long-term savings market is steady. But steady is not sufficient to deal with the growing savings gap. The fall in collective workplace savings shows that the UK is missing a key opportunity to reinvigorate overall saving levels. We need to improve incentives for employers and workers alike, and consistently promote the need to save.

“ABI will launch a detailed policy programme in June which will set out how reform can be achieved. Our figures show that now is the time for action from Government and industry alike; pension reform can no longer be left in the ‘too difficult’ basket.”