Research by the Department for Work and Pensions (DWP) has revealed that although half of Britons expect to be able to fund their current lifestyle during retirement, a third are not saving into a pension. 48% of people under the age of 34 and 40% under 44 are failing to plan for their futures.
Despite these figures, the majority of those questioned, particularly younger participants, expected to be able to continue to afford luxuries such as dining out and new clothes once retired. Paul Banfield, of Best Advice Financial Planning, said, “This survey shows young people have the greatest expectations of later life, hoping to still afford their gym membership, satellite TV and foreign holidays as standard. But this doesn’t come cheap and young people will miss the boat if they don’t start saving as soon as they start work.
This is a wake-up call - pensions are a young person’s issue. Leave it too late and they will pay the consequences for many years to come.”
