More than half of young Brits are not saving enough for their retirement while almost as many do not participate in pension schemes offered by their employers, a survey suggests.
Research compiled by consulting firm Aon has found 53.3% of UK employees between the ages of 18 and 29 are not saving a sufficient amount for their retirement, while 46.7% out of 1,500 individuals questioned do not contribute to their company’s pension scheme.
This comes despite the fact that two out of three of people within this age bracket feel future income from occupational and state pensions will ensure them a decent retirement, and none of them will consider accepting lower retirement income.
That said, one in five of this group feel they are too young to worry about a pension scheme, with 16.5% adding they do not plan to be with the company long enough to take up a scheme.
Consultant and actuary at Aon, Chris Squirrell says of the findings: “This is a dangerous cocktail of high expectation and unfounded faith in the UK pensions system.”
He says while it is difficult early on in one's career to save with low salaries, it is more efficient when it happens earlier.
Squirrell adds young people do not understand that in future the onus will be on the individual to ensure enough savings for a sufficient retirement, urging employers to step up to the plate by encouraging younger employees to save ‘via a relatively straightforward communications programme’ so as to raise awareness and improve take-up.IFAonline
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