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Government research reveals pensions gap

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12/02/2008

With over half the nation’s under 34 year olds not saving anything at all, they are at risk of becoming the ‘big dreams, small assets generation, according to the Department for Work and Pensions.

Far from retiring quietly, young people today expect to be able to afford the things they enjoy now when they retire with foreign holidays, satellite TV and gym membership as standard.

Young people in the South West are on track for a bigger shock than others across the UK if they don’t start saving for their retirement soon, followed closely by Scotland and the West Midlands. Even in Tyne Tees, where people are most realistic, there’s still a large gap between plans and funds for later life with the Welsh hot on their heels.

A YouGov poll of nearly 2,000 people from across the UK revealed young people are failing to back their plans with hard cash.

Paul Banfield, spokesman for Best Advice Financial Planning, said: “It’s great that young people want more and the message to them is simple – you can take steps today to set yourself up for the kind of life you want tomorrow.

“If you don’t wake up to this opportunity and simply cruise towards retirement with your eyes closed, you may have a rude awakening.”

Pensions Minister Mike O’Brien said: “Work and saving should go hand in hand. Pensions aren’t just for pensioners – they are a young person’s issue. If young people don’t have a save-now attitude, they could miss a trick. Pension pounds work harder the earlier you save – a £1 saved at 20 could be worth up to sixty per cent more at retirement than the same £1 saved at 40.”

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