You are here: Home - Investing -

Pension scare stories start to pay off as more young workers save

0
Written by:
18/03/2014
The deluge of pension scare stories are paying off, according to new research, which found a fifth of young Britons have started saving for their retirement.

The study of more than 2,000 people revealed that 21 per cent of Britons aged between 18 and 30 have started contributing to a pension, while a further 31 per cent have seriously considered it.

Some 52 per cent of those who have already started saving credited negative media coverage of the issue as the impetus and only 17 per cent were encouraged to start contributing by their parents.

Matthew Wood, managing director at vouchercloud.com, said: “Over the last few years there’s been a lot made of the fact that the generation of today are going to struggle financially once they reach retirement. The golden age of pensions has passed and the majority of people can no longer sign up to lucrative company schemes offering final salary pensions. Media coverage of the issue has been fairly widespread and it certainly seems to be having an effect.” 

Of the respondents who had yet to start saving, 47 per cent said they could not afford to lose a slice of their pay packet each month; only 32 per cent said they had other priorities while still young and 17 per cent told vouchercloud that the question of a pension had ‘never crossed their mind’.

Contributing to tax free ISAs was the most popular method of saving -41 per cent had started making such contributions- while 37 per cent had taken steps to reduce debt with retirement in mind and 22 per cent had signed on to a company pension scheme.

More than half of the young adults surveyed admitted to being concerned about their future pension options.

Wood concluded: “The fact that over half of the respondents are fearful about what their future retirement holds should help to try and address the issue. Starting to plan as young as possible is certainly the way to go if you want to live comfortably in old age.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

PayPal closing down Money Pools

The ability to create new Money Pools will be disabled from 30 September, while existing Money Pools will be s...
PayPal closing down Money Pools

Three benefits of staggering your 25% tax-free pension lump sum

People aged 55+ can withdraw a 25% tax-free lump sum from their pension. But instead of taking this amount in...
Three benefits of staggering your 25% tax-free pension lump sum

How to a write a winning property offer letter

You’ve viewed the perfect property but there’s likely to be stiff competition from other buyers. Here are five...
How to a write a winning property offer letter

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week