Recent studies have shown that since the beginning of October 2007, private pension savings have shrunk by 29%.
The combined value of individual private pension plans, company money purchase schemes, and additional voluntary contributions made by members of final-salary schemes have shrunk by £161bn, from £552bn to £391bn over the 17-month period. The fall is largely due to the dramatic collapse in share prices.
Joanne Segars from the National Association of Pension Funds admitted that "confidence in pensions is low at the moment." But she maintained that it was slowly returning and that pensions were still the best way to save for retirement.