People in the UK are putting more money into savings as employer-sponsored pension schemes increase.The Association of British Insurers’ annual summary on pensions shows an overall increase in Annual Premium Equivalent (APE) figures and a substantial rise in Individual Single Premium business.

In 2004, APE rose by 5.4 per cent to a total of £10.2 billion, while new business in the Individual Single Premium market increased by 9.5 per cent to a total of £48.7 billion. “We are particularly encouraged by the growth in employer-sponsored Stakeholder Pensions and Group Personal Pensions,” said Chris Kenny, the ABI’s head of life and pensions.”This demonstrates that employers are more ready now to respond to our consistent calls for the establishment of these schemes.”Employer-sponsored Stakeholder Pensions also saw an increase in take-up.
Last year, the number of people taking advantage of the schemes rose by 6.2 per cent to £388 million-worth of new premiums. Mr Kenny feels that more of the same will follow with the introduction of the Financial Services and Markets Act.However, he added: “We must not be complacent. There remains a significant shortfall in overall saving; not enough people are making sound, regular financial arrangements for their retirement.”

One in three UK consumers (35 per cent) overlook the rate of interest they will be charged when choosing a loan, new research reveals.A survey by Alliance & Leicester found that a third of consumers admitted that they did not look at the annual percentage rate, or “APR”, when shopping for a loan.

The bank has warned borrowers that they could end up paying twice the rate they need to.Of those who said that the rate of interest was not their top priority, 37 per cent thought all banks’ loan rates are similar, one in five (19 per cent) confessed that they did not fully understand APRs, and 13 per cent thought a couple of per cent would not make much difference to the cost of their loan.Andy Bayes, head of personal loans at Alliance & Leicester, said: “While two out of three people rightly focus on the rate of interest when choosing a loan, there is still a large number of people who pay over the odds by not giving it their full attention.”He added: “Arranging a loan through the bank branch where you hold your current account may once have been the easiest way of arranging a loan.”However, the telephone and internet has made it much easier to shop around and make sure you are getting a competitive deal on your loan.”