Young people neglect pensions

In spite of government recommendations that the retirement age for UK adults is set to increase to 66 by 2024, 67 by 2034 and 68 by 2044, most young workers still plan to retire in their early 60s, yet have no idea how to afford it.

Almost half (46 per cent) of people planning to retire before they reach 50 do not even have a pension, a YouGov survey has found, and it is calculated that, country wide, over nine million workers do not have any pension provision in place.

Barings' head of European sales, Rob Lay, is urging people to plan more carefully for their retirement: "People have to start taking a more proactive approach to planning for their retirement.

"Relying on your property as a pension is a very risky strategy to take. These figures reveal a worrying trend of UK adults assuming that they will be in a position to retire without having made the necessary arrangements for funding that retirement. It is absolutely vital for people to start considering how best to build their pension fund from the day they start working."

People struggling to afford day to day expenses such as utility bills, motor and home insurance premiums, need to budget to save for the long-term too.

22/01/2008 13:07:16