Over half of thirtysomethings contributing nothing towards pension
According to a study by Skipton Building Society, over half of under-35 year olds in the UK are contributing nothing towards a pension and admit to struggling with their finances.
Skipton established that nearly 60% of under-35 year olds have no savings at all as rising mortgage payments and increasing household bills means that a growing amount of young people are unable to contribute towards their retirement. 75% of under-35 year olds are in debt with an average of £9,000 on cards and personal loans.
Nearly 20% of under-35 year olds spend more than they earn each month while two-fifths admit to having less than £100 in their accounts at the end of the month.
Ian Naismith of Scottish Widows commented that not enough young people are taking steps to save for retirement.
Mr Naismith said he believes it is particularly important that women start saving as early as possible, especially if they plan to have a family because this often disrupts financial planning. A survey by the organisation discovered that half the number of women who start saving for retirement feel unable to continue when they start a family.
However, Skipton’s research did establish that those young people who can afford to save for their retirement are putting away over £180 a month.
Financial experts believe that saving needs to become a priority. In the short-term. it provides protection against unforeseen circumstances, while in the long term it could be the difference between a secure retirement and one that is full of financial difficulties.