New research has revealed people are more likely to save for their retirement using an occupational scheme than a personal pension.

The Strategic Society Centre has conducted a study into the sector in partnership with the Institute for Social and Economic Research at the University of Essex.

A report detailing the findings called Who Saves for Retirement? has now been released and aims to explain the factors that persuade or discourage individuals from saving for later life.

It was discovered around half of employees in the UK put money into an occupational pension scheme, while just seven per cent did the same with a personal pension.

Furthermore, eligible workers would be more likely to join a workplace initiative if it was accompanied by employer contributions, which 90 per cent of respondents were offered.

One of the main factors determining whether or not people joined an occupational pension scheme was their eligibility, as there are significant variations across different sectors.

Some 40 per cent of those in the retail industry and small workplaces sector were covered, compared to between 80 and 90 per cent in public administration and education or large workplaces.

These were not the only factors determining pension uptake. People with student loans were five percentage points less likely to be part of an occupational pension scheme than those without, although this did not have any bearing on personal saving.

It was also found "significant proportions of employees" think their main income during retirement will come from alternative sources, such as a state pension.

"This may indicate diversification in retirement planning or low expectations of private pensions," the report noted.

Couples were also said to be likely to make similar pension decisions, while an individual without savings would be able to rely on their partner's money.

In September, data from the Office for National Statistics showed there has been a decline in personal pension scheme contributions in the UK.

While contributions totalled £20.9 billion in 2007-08, this figure declined to £18.7 billion in 2009-10, something it is thought occurred due to the recent economic downturn.

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