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.”