Fewer Britons saving despite pension jitters-study

LONDON, June 27 (Reuters) The proportion of Britons saving enough money for old age fell sharply in 2006 from a year ago, suggesting citizens have not acted on worries about creaking pensions, according to a Scottish Widows survey today.

The polling organisation YouGov carried out a poll for Scottish Widows, the life insurance arm of Lloyds TSB, surveying 5,806 people between March 16 and 22.

The percentage of people saving adequately for retirement fell to 46 per cent from 55 per cent in the previous year, while the savings ratio measure dropped to 5.8 per cent from 7.9 per cent.

The survey found that people working for large firms -- measured as having more than 1000 staff -- accounted for 51 per cent of citizens making adequate savings. Some 67 per cent of adequate savers are men.

There was a large rise in the number of Britons making no savings at all, rising to 28 per cent from 17 per cent a year before.

More respondents to the poll said they did not know what their main income source in retirement would be, with 23 per cent taking this view in 2006, up from 12 per cent.

Concerns about meagre savings have prompted the British government to propose sweeping legislation, including automatically enrolling staff into a national saving system and raising the age that citizens can collect a state pension.

Retirement issues have shot up the political and business agenda.

People are living for longer, company pension plans have fallen into the red and some companies have shut down retirement plans to new staff and cut existing benefits.

But Britons are still not saving enough, Scottish Widows said.

''Although it is too early to tell it does appear, regrettably, that the noise surrounding pensions could have led many to put their retirement savings on hold while they wait and see what happens with the much publicised government reforms,'' Ian Naismith, head of pensions market development at Scottish Widows.

''Everyone needs to get onto the savings ladder as soon as possible to start working towards a comfortable retirement.'' REUTERS SHB ND1630