An increasing number of people are making provisions for their financial future, it has been revealed.

In research carried out last week by Scottish Widows it was indicated that just over half (51 per cent) of people are currently saving “adequately” with at least 12 per cent of their salary being placed into pension pots. This figure represents a rise from the 49 per cent recorded in 2007. Meanwhile the financial services firm’s average savings ratio increased over this period of time to stand at 8.7 per cent, the highest number recorded since the annual study began three years ago.

It was revealed at present that about a fifth (17 per cent of consumers) are putting between six and 12 per cent of their annual income away into retirement savings, with 14 per cent saving somewhere between zero and six per cent. On the other hand 18 per cent are not saving any money away, down from the 28 per cent noted two years ago.

Following on from making comprehensive levels of saving for retirement, it is possible that consumers are able to manage various demands on their spending in later life. This may mean that they are able to meet the cost of property repairs, higher than expected bills or loan repayments with ease.

Ian Naismith, head of pensions market development at Scottish Widows, stated: “While pensions savings are slowly starting to rise, there is still the real worry that in the current economic environment the nation is not doing enough to prepare for retirement. While the savings message that we have been campaigning on for several years is getting through, with people scared that they will not have enough to live on in retirement, this hasn’t necessarily translated into pensions savings. Traditionally in times of economic uncertainty, long-term savings have increased but people need to ensure that they are saving into the right vehicle; the best investments for those seeking security in retirement are pensions.”

However, Mr Naismith went on to report that in spite of the improvements which have been made in Britons’ desire to save for retirement “there is a distinct sense of pessimism emerging from our results with consumer confidence falling compared to last year”. The pensions expert asserted that a significant number of Britons believe that the current financial climate means they cannot afford to put any extra cash away for savings. And with the cost of living continuing to rise it was reported that “the outlook isn’t getting any brighter”.

The firm showed that a third of people currently saving think they are in a position where they are unable to increase the amount of money that is being put away for retirement. Meanwhile, some 59 per cent do not envisage increasing their savings levels over the course of the next 12 months. Scottish Widows also revealed 32 and 29 per cent of Britons state to be pessimistic about their short and long-term financial situations respectively. The fear that significant numbers of consumers hold in regards to their savings were also revealed in statistics revealed 37 per cent of Britons are concerned about not having any cash to put away into a pension scheme, up from the 34 per cent noted last year.

For those consumers who are concerned about their ability to put money away for the future taking out a debt consolidation loan might prove to be of assistance. By selecting such a loan, it is possible that borrowers are able to merge various constraints on their spending into a single low-rate monthly repayment. This may prove to be of particular assistance after a study carried out by Skipton Building Society last month showed that those over the age of 55 are struggling the most to manage with surging living costs. It was also reported that older people are more likely to have taken steps to cut back on their spending following on from rising expenses.

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