Quantcast
Menu
Save, make, understand money

Retirement

Young workers to increase pension saving, research finds

Taha Lokhandwala
Written By:
Taha Lokhandwala
Posted:
Updated:
08/04/2013

Half of 25-34-year-olds plan to increase the amount they save into a pension this year, according to research from the National Association of Pension Funds.

The survey showed the age group had the highest percentage planning to increase savings, with 53%, with only 40% of 35-44 year olds planning to do so and only 26% of 45-54 year olds.

However, the research did not account for current levels of pension savings.

The survey also showed those aged below 35 were the least likely to have access to a workplace pension. Only 48% of those ages 25-34 were covered and 44% did not know whether it was a good pension or not.

The 25-34 age group also had the highest percentage who wished they had taken more interest in saving for retirement, with 47% lamenting their delayed decision.

Other age groups had lower levels with 42% of those above 65 and 44% of those between 55 and 64 wishing they had started earlier.

The NAPF said the results came as a surprise as research usually shows interest in pensions increases with age and younger people are much less engaged than the older generation.

NAPF chief executive Joanne Segars described the results as counterintuitive but encouraging.

She said: “A few years ago these young workers were nicknamed the ‘ostrich generation’, because they knew they needed to plan their retirement, but were doing nothing about it.

“It looks like many younger people are taking their heads out of the sand when it comes to pensions.

“We still have a long way to go to raise interest among workers in their early 20s, but the key thing is that the earlier you start saving, the better.”

The research was conducted by Populus in February this year, on behalf of the NAPF. It surveyed 2,050 people, 923 of who were employed. The remainder were self-employed, unemployed or retired.


Share: