UK workers start their retirement plans at 28
Such is the love affair that Britons have with their work that they start taking pension advice and preparing for their retirement at 28, earlier than in any other major country, according to a report from insurer and life company Axa.
But the report also found that one-third of the respondents would be depending on property to finance their old age, using methods like equity release to draw down funds for day-to-day living expenses.
Taking pension advice and preparing for retirement at 28 also means that this phase of financial planning comes before many people have even got on to the property ladder, which now tends to happen in their early thirties.
Axa’s Global Retirement Scope study said the average worker in the US started saving for old age at 30, while in Australasia and mainland Europe the typical age rose to 31 and 33 before pension advice was taken. In Japan workers typically waited until they were 37 before making their plans.
The Chinese wait the longest before starting to make their retirement plans, the survey reported, as there is a strong tradition of families looking after their aged relatives in that country.
Head of pensions and savings policy at Axa, Steve Folkard, said: “It is exciting to see people starting to take more responsibility for their own income in retirement and obtaining pension advice to achieve this.
“However, homeowners have limited options for generating earnings from the property they live in.”