‘Get your pension into shape as a New Year resolution’, urges the ABI
- ABI launches upgraded online Pension Calculator -

(357 words)

Nearly three quarters of people (72%) regard their personal finances as “out of shape” or “in need of firming up” and 57% of people admit to never reviewing their pension plans, according to a new survey commissioned by the ABI. 

The research coincides with the launch of the ABI’s upgraded online Pension Calculator on January 1st, 2005, which helps people work out how much retirement income they might receive from the amounts they save. 

Key research findings include:
· Access to an online Pension Calculator and ‘talking to an IFA’ were rated joint top (both with 12% of votes) as most likely to make them review their pension plans more often
· Ten times more people say their top financial priority is to pay off debts (32%) than to sort out their pension (3%)
· 16% say their top financial priority for 2005 is to win the lottery

Developed with the FSA, the upgrade responds to user feedback and includes new features such as the ability to input details of the funds that have already been built up, as well as details of any employer contributions people may be receiving.
 

 Tony Herbert, ABI Pensions and Savings Policy Adviser, said:

“The New Year is an ideal time to resolve to get your pensions and savings into shape.  Our research shows that people recognise the need for a financial work-out, but that there is apathy about taking some action.  Using the online Pension Calculator is easy, and a simple way of working out how much money you need to save on a regular basis for a comfortable retirement.

“We hope people will use the calculator as a tool to help them think about their pension and savings plans for the New Year and beyond.”

Anna Bradley, The FSA's Director of Retail Themes, said:
        
        "The FSA is committed to fostering greater financial understanding and
         awareness among UK consumers.  The Pension Calculator, produced in
         partnership with the ABI, gives consumers a useful tool to plan their
         saving for the future.  We urge consumers to make a New Year's
resolution to use this calculator to think about their long term
financial future."

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Note for Editors

1. Enquiries to: 
 Alan Leaman  020 7216 7440 (Mobile: 07957 482330)
  Lucy Butler  020 7216 7411 (Mobile: 07712 841184)
 Malcolm Tarling  020 7216 7410 (Mobile: 07776 147667)

2. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member companies provide over 97% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

3. An ISDN line is available for broadcasts. 

4. The ABI Pension Calculator has been developed by the ABI and the FSA .  It can be found at:  http://www.pensioncalculator.org.uk and at http://www.pensioncalculator.org/worksmart

The Pension Calculator is a tool to help Users work out how much income they might receive in retirement from the amounts they save.

The upgraded Pension Calculator now allows Users to take into account their existing pension fund, as well as future contributions, to get a more rounded estimate of the pension they can expect in retirement.  In this way, the Calculator will be of use to many more people with money purchase pensions.

In addition, the revamped Pension Calculator allows users to input employer contributions when calculating what their pension might be worth at retirement.  This will enable Users to gain a much more accurate picture of what they may receive from their money purchase pension in retirement.

Other useful features of the Calculator include the ability to experiment with saving more and retiring later in order to see the impact this can have on the pension.

5. The ABI survey was conducted by YouGov in December 2004 amongst a sample of 1963 people aged 18 and above in Great Britain.

Key findings: 
“How would you describe the ‘state of health’ of your personal finances?
Fighting fit:  18%
Need firming up:  41%
Out of shape:  31%
Prefer not to answer:  9%

How often, if ever, do you review your pension plans?  Please tick the response which comes closest to what you do.
Once a month:  2%
Once a year:  8%
When I get a pay rise:  2%
When I receive my annual pension statement:  13%
Whenever my personal circumstances change, (e.g new job, new home, new baby, etc):  12%
At the end of each tax year:  6%
Never:  57%

Which one of the following would make you MOST likely to review your pension plans or make you review them more often?
Access to an online Pension Calculator:  12%
Talking to an IFA:  12%
Talking to your family:  7%
Talking to your employer:  6%
Advertising by pensions suppliers:  1%
Advertising by independent bodies/the government:  4%
None of these:  58%

We’re coming to the end of the year.  The New Year is traditionally a time when many people make resolutions…Which of the following would be YOUR top financial resolution for 2005?
Pay off my debts:  32%
Win the lottery:  16%
Book a summer holiday:  11%
Buy a house:  5%
Learn more about my finances:  5%
Sort out my pension:  3%
Play Channel 4’s Richard and Judy’s ‘You say, we pay’ game:  1%
None of these:  28%

 Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

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