Half of over 40s wish they saved more when they were younger
As proposals for the Government’s ‘defined ambition’ pension scheme are unveiled, the research found that 43% of over 40s surveyed don’t think they have saved enough for their retirement.
The research found that 51% of over 40s surveyed wished they had saved more for retirement when they were younger, as this group starts to realise that they need to do more to provide for their future financial wellbeing.
Just 25% of those over 40 surveyed felt that they had saved enough for their retirement. Surprisingly, this is lower than the 28% of 18-24 year olds who say they are already saving regularly for their retirement, indicating that the younger generation is attempting to be more prepared for financing their later life.
Colin Williams, managing director of Corporate Benefits at Friends Life, said: “This research highlights that there was a distinct lack of urgency in the generation born before the 1970s, a balance which must be redressed by the younger generations today.
“It is encouraging that our research suggests that those between the ages of 18-24 are realising the importance of saving to provide for the financial future they are looking for. We, as an industry, have a fundamental role to play in ensuring we support younger people in making good financial decisions for their future.”
Despite this positive finding with regards to the younger generations, the research also uncovered that 34% of 31-39 year olds are being complacent by not saving anything for retirement at all.
Colin Williams added: “The fact that such a high percentage of those approaching 40 are not saving for their retirement is extremely worrying. Sadly, unless people start making real savings now, they could find that their vision of a comfortable retirement could be nothing more than a dream.”
The research also found that 74% of over 40s have never taken out protection insurance. But the younger generation seem to be more aware of the need, as a fifth of 18-24 year olds and a quarter of 25-30 year olds think they will take out protection insurance in the future.