Hundreds of thousands of savers are abandoning pensions in favour of Individual Savings Accounts.
The problems is pensions are just too complicated, according to a report by The Institute of Directors (IoD)
It says the amounts paid into ISAs has increased year on year, rising from £35.7bn in 2007, to £43.9bn in 2009/10.
At the same timer fewer of us paid into pensions, while employee and individual pension contributions peaked in 2007 at £25.6bn, and fell to £22.9bn by 2009.
The IoD says this means the population choose to pay almost twice as much into ISAs as into pensions, making clear which savings vehicle they prefer.
And it expects payments into ISAs to have increased to £53.8bn over the last year.
The report, “Roadmap for Retirement Reform”, was written by IoD pensions expert Malcolm Small, and recommends the government make pensions simpler and come up with a long-term plan to encourage us all to save.
But you don’t need to wait for the government to get its act together. Just read our article about pension-free retirement planning.