Britons confused by money jargon

Britons prefer to spend rather than save

Millions of Britons are failing to save adequately for their retirement and find financial jargon impenetrable, a survey by insurer Aviva suggests.

Nearly 25% of Britons admitted they did not understand basic financial products such as pensions, the survey found.

Planning for retirement comes below buying a car or funding a holiday on most peoples lists of financial priorities, Aviva said.

Fewer than four out of 10 said they were saving for their retirement.

This ties in with recent official statistics show that at present Britons are saving a smaller proportion of their income than at any time for over a decade.

Last year, the government estimated that 12 million Britons were failing to put aside enough money to enjoy a comfortable retirement.

Reasons revealed

The Aviva survey reveals a number of factors which could explain why Britons are so reluctant to put save for their old age.

The main reason given by respondents was lack of financial knowledge, confusion about jargon as well and a desire to focus on current expenditure rather than on long term savings.

For example, one in five people surveyed said they were not planning for retirement because it was "too far away."

Meanwhile, the majority of people surveyed said they ranked having a happy family life and good health before a stable financial situation.