Saving for a pension is not a high priority for most consumers in their 20s, claims UK investment group Alliance Trust, as this group is instead focusing on paying off debts or saving for a house or other specific purchases.
According to research commissioned by the investment firm, only 17% of those in their 20s are putting money away for their pension, in comparison to 27% in the group aged 30 to 50, while 30% are saving to purchase a house and 32% are putting money away for specific purchases.
However, the Alliance Trust does not believe that this should be a cause for concern, despite accountancy firm Deloitte claiming that more than 12 million Brits are not putting enough money in pension funds to live comfortably once they retire.
Not everyone has to start saving into a pension scheme as soon as they can, contrary to popular belief, commented Hyman Wolanski, head of pensions at Alliance Trust. A pension has clear tax advantages but will not be right for many younger people struggling to juggle their debts, day-to-day living costs and what to do with any remaining disposable income.