Thirtysomethings face future of poverty

People under the age of 35 face the prospect of working until they are 76 because financial demands are threatening their plans for a comfortable retirement

A study, carried out for the Skipton Building Society, interviewed over 1,200 adults aged 18 to 35, discovered that many under-35s are facing the prospect of working well into their mid-70s if they want to retire comfortably.

This group of people are big spenders, poor savers and are on the way to financial meltdown.

The survey established that over half of under-35s are not putting any money into a pension. Of those who are saving into a pension, 25% are putting aside only £50 or less, which is below the amount recommended by financial advisers.

The main reason this group of people are not putting any money aside is the fact that they are heavily in debt. Three-quarters are in the red, owing on average over £9,000. 10% owe more than £20,000 while 20% do not have a single penny in a savings account or any other investments.

Those who do have savings have less than £1,000, which would not cover one month’s spending if they lost their job.

Jennifer Holloway of Skipton Building Society said it is time for a wake-up call. Today’s under-35s will either need to work much, much, longer or earn much, much, more to be able to retire when and how they want to.

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