LONDON, 11 April 2006 – One in five working adults (20%) in the UK is more likely to spend their spare cash at the end of the month on a shopping spree or a holiday than pay into a pension scheme, according to new research commissioned by Aon Consulting, a leading pension, benefits and HR consulting firm.

When provided with a range of cash spending options, the research, which surveyed 1,680 adults in full time or part time employment, highlighted that UK employees regard paying into pensions (4%) only slightly more important than buying the latest gadgets (2%) such as an iPod or PSP (Play Station Portable) or buying lottery tickets (1%). 

Paying off debts (42%) and paying into a savings account (29%) were the two most popular choices for UK employees, with putting money towards a holiday or shopping spree (20%) close behind.

Commenting on these results, Richard Cox, Client Relationship Director at Aon Consulting, said: “With only 4% of individuals putting their spare cash into a pension scheme, the survey highlights that funding retirement is incredibly low down in people’s list of priorities. Even amongst the 55-64 year age group nationally, only 7% would further invest in their pensions.”

“UK employees can’t afford to take a short term view on pensions. As life expectancy increases and the number of final salary schemes decreases in favour of defined contribution schemes, it means that responsibility for saving has shifted from the employer to employee. Every employee with an occupational pension scheme, no matter how young, should seek advice on how much his or her pension fund will actually provide in retirement. This way, individuals have the choice of investing more of their disposable income or working longer to achieve a fulfilled retirement.  Inaction is not an option.”

The research also highlighted a number of regional variations on the attitudes to disposable income including:

• Employees in the north of England favoured their holidays and shopping sprees (25%) much more than those in Wales and the south west (15%) when considering where to put their spare cash.

• Paying of debts was considered most favourable in London (45%) and the Midlands (44%).

• London was the only region to regard paying in to a pension (6%) as more important than going on a shopping spree (3%).

Note to Editors:

1.                   ICM Research interviewed a random selection of 1680 workers aged 18+ by telephone between 01 and 09 March 2006.  Interviews were conducted across the country and the results have been weighted to the profile of all adults.   

2.                   The research programme was managed by David Burton Associates, an independent research company: www.davidburtonassociates.com

About Aon Consulting

Aon Consulting is a leading human capital consultancy, helping organisations of every size to attract and keep the employees they need. We advise on all aspects of employment, including health-related insurance and risk; employee compensation and pensions; human resource strategy planning; job design and change management; and staff assessment and legal issues. Aon Consulting is a division of Aon, one of the UK’s largest insurance broker and provider of risk management services and a major force in reinsurance and the UK human capital consulting market.  Aon Consulting Limited is authorised and regulated by the Financial Services Authority.

About Aon
Aon Corporation (www.aon.com ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 53,000 professionals in its 600 offices in more than 120 countries.  Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.
 
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