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Pensions in decline, research reveals

New research conducted by the Institute of Directors (IoD) indicates the nation's pension architecture is causing many people to abandon saving in them altogether.

This trend could be set to change, as the IoD - and other groups such as the Engineering Employers Federation - have welcomed pension reforms announced by chancellor of the exchequer George Osborne in his Budget statement.

In the meantime, the study found that increasing numbers of individuals are turning to cash Isas as a vehicle to set money aside for the future.

The IoD suggested this could be resolved with certain measures, such as raising the state retirement age to 70 in 2044 and creating a flat-rate, universal, basic state pension.

Malcolm Small, senior adviser on pensions policy with the IoD, said: "The fact that so many people are either not saving at all for retirement or moving to other investment vehicles such as Isas is a stark illustration that the current architecture has lost public confidence."ADNFCR-1898-ID-801346117-ADNFCR

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