Young people are not relying on the government to provide an income when they retire, according to a...
Young people are not relying on the government to provide an income when they retire, according to a Co-operative Insurance Society survey.
Questioning 18-25-year-olds in the UK, the survey concludes that most no longer count on receiving state pensions becuase just 3% relate the word pension with "something paid for by the government".
A third of those polled also say pensions make them think of "old age", associating it with something that you would save for later in life.
CIS believes that even though most young people may acknowledge that the state is unlikely to provide an adequate income in retirement, many do not understand the benefits of starting saving for their own pensions in early days.
"By recognising that they should not rely entirely on the state for retirement income, young people have made an important first step on the path to self-provision. This now needs to be carried forwards and young people need to take more control of their financial planning needs at an earlier age," says Finian O' Boyle, CIS chief operating officer.
"Saving for the future via a pension still remains a highly tax-efficient way for people to save in the UK, but people still find the word pension off-putting and confusing."
The survey did not ask participants if they were aware of any differences in the meanings of the words "pension" and "annuity", a CIS spokesperson says.
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