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.”

Legal & General credit cards find half the population spending Christmas on plastic
As Christmas approaches the nation is preparing to spend more and more, with on in two consumers planning to fund the holiday season by credit card, Legal & General has found. Legal & General’s new MoneyMood survey has found that while four out of five people could afford to pay their bills over the festive season, one in two UK adults were planning to fund extra expenditure with credit cards.

But the additional cost of Christmas meant that one in seven families said that they would have to use credit cards and/or savings to pay bills.Over the next four weeks the nation is planning to step up its spending and this extra money looks as though it will be going towards the Christmas spirit, with gifts for friends and family, making ourselves look good and going out or having fun all areas that will see an increase in spending.”We think the ‘MoneyMood’ of the nation is firmly in ’spend’ mode as people prepare for Christmas but may swing back to saving as we move away from the shopping boom after the Christmas period,” noted Claire Stracey, Legal & General’s marketing director retail investments.