According to research released by Baring Asset Management, 33 per cent of British adults - some 15.1 million people - are currently not putting any money into pension schemes, which could consequently see them struggle to manage their finances as they get older. And by doing so consumers may begin to face difficulties in servicing personal loan repayments and other demands on their spending. The study also indicated that it is women who could encounter the greatest financial management problems as nearly four in ten (38 per cent) of females do not have a pension. This compares to some 27 per cent of men who do not have the financial product.



Research from the financial services firm also revealed that just over a third (34 per cent) of 25 to 34-year-olds currently do not have any sort of pension plan set into place, with just under a quarter of 35 to 54-year-olds lacking a scheme. However, it could be the over-55s who are set for the most pronounced trouble in servicing utility bills, loans and other constraints on their day-to-day spending as a "staggering" one in five are yet to take out a product despite being due to retire within a few years' time.

In addition, Baring Asset Management also showed that 3.2 million Britons (seven per cent of the adult population) are set to rely on property investments to fund their retirement. However, Marino Valensise, chief information officer for the firm, warned that "placing all your eggs in one basket" is a risky strategy as such consumers are left open to potential movements in the property sector and changes to the base interest rate.

He said: "Too many people are relying on property to fund their retirement. It's crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property." The information officer reported that the marked house price growth seen in recent years is unlikely to continue, with homeowners also set to face increased borrowing costs which may in turn impact upon their ability to manage other areas of their spending such as secured loans.

"It's very worrying that so many people are not thinking enough about their financial future and it's not just young people who are failing to make any sort of pension provision. The longer you have before retirement, the more you should be placing in assets which will be able to generate a higher level of return", Mr Valensise added.

Consequently those consumers concerned that they are currently unable to put aside enough money for saving into pension schemes may well wish to consider taking out a low-rate personal loan. In doing so, borrowers could be able to service certain demands on their money, pay off debts owed to various creditors, and in doing so, free up more cash to set aside for later life. Last month, research released by Birmingham Midshires showed that more than half of adults believe that they are not earning enough money to allow them to start saving.