Figures released today by the Association of British Insurers show that sales of individual life and pensions products grew by 5 per cent in the first quarter of 2002, compared to the same period in 2001.

Sales of regular premium life and pensions business increased by 15 per cent to £899 million. The news comes as Office of National Statistics figures reveal the value of contributions to insurance administered pensions rose 21 per cent to £70 billion in 2001.

Forum Response: Association of British Insurers

Mary Francis, the director general of the ABI, told ePolitix.com: "The continued increase in the sale of pensions is encouraging, particularly as we are also seeing a significant, year on year, increase in the total value of contributions made to policies.

"This increase, however, needs to be seen in the context of Britain's widening savings gap. Having identified the barriers to encouraging greater savings, the industry is looking to work in partnership with the government, employers and the regulator to develop ways to overcome them."

Forum Response: National Association of Pension Funds

A spokesman for the National Association of Pension Funds told ePolitix.com: "Though welcome, this news only scratches the surface of the potential problems of people not saving enough for their retirement. And there is nothing like a pension that comes with the job.

"Between 15 and 20 percent of people who are eligible to join their employer's pension scheme have not done so. They could be turning down a sizeable chunk of their pay packet by turning down their employer's contribution to their pension."