Up to 90% of people aged 30-45 years old have not planned for retirement and though many intend to make plans in their 40s, only a few bother, research shows.
Old Mutual Wealth (OMW) said this showed ‘Generation X’ had a “pension procrastination problem” when it comes to putting money aside for retirement.
Of the 90%, the average age at which people felt they would start planning was 45 – roughly 20 years before they might hope to retire.
Yet the survey showed 13% of respondents aged 44 – 45 actually had done so.
That age group on average expects to have a financial plan in place for retirement by the time they are 51.
The vast majority of respondents acknowledged a need to put in place a financial plan for retirement, with only 6% of those without a plan saying they never expected to put one in place.
The survey, carried out by YouGov for OMW, polled over 3,000 adults. OMW focused on ‘Generation X’ due to concerns the group is at “acute risk” of under-saving for their retirement.
Research issued in 2014 by the UK Tax Incentivised Savings Association indicates individuals aged 45 today will enter retirement less well off than earlier generations, for the first time in centuries. This is attributable to the decline in defined benefit pension schemes and changes to the state pension.
Generation X also benefits less from the introduction of auto-enrolment; workers currently in their 20s benefit from saving for most, if not all, of their working life through the scheme, which mandates all employers offer staff a workplace pension, with minimum contributions set for both employer and employee.
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