Almost 40% of young Brits have not started saving for retirement and nearly 20% have no current plan...
Almost 40% of young Brits have not started saving for retirement and nearly 20% have no current plans to start putting money aside, according to Lloyds TSB's report 'Savings in Britain'.
Conducted by interviewing 2,000 people aged 18 to 34, the survey shows that nearly every second young Brit has not commenced saving for the future, despite the fact that almost half those surveyed believe that saving for a pension should start in one's 20s.
The report concludes that saving for the future is not considered a priority, despite the result that just 13% of young Brits think that the state pension will be able to cover their expenses as pensioners.
Half of those questioned declared they had concerns about lack of funds when they became older.
Of those who regularly save, 25% do so for a rainy day, 20% for holidays and 10% for home and garden improvements, compared to less than 3% claiming to save for the future.
"These alarming statistics suggest that, whilst the penny has finally dropped that saving for retirement is important, many of the nation's twenty and thirty-somethings are adopting an 'ostrich mentality' when it comes to pension provision," says Diann Hartnell, head of Savings at Lloyds TSB.
"Lack of financial know-how coupled with a desire to enjoy their hard-earned cash now means that young people could risk an impoverished old age in the future."
Young Brits' 'lack of spare cash' seem to be one of the main reasons for this saving deficit, Lloyds TSB says.
Other barriers include the desire to spend any surplus money right away and people already using their savings for a particular purpose.
The survey also shows that men save more than women, with 32% of the male respondents saying they have started saving for their retirement compared to just 23% of women.
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