A recent survey, conducted by the Insurance Company, Friends Life, has revealed that the vast majority (89%) of those enrolled in the company’s corporate pension scheme would advise starting to save for retirement before the age of 25.
The research also showed that 49% began paying into their pension before the age of 25, and 78% before the age of 35. 64% of those surveyed said they would, ideally, like to retire at around 60-65 years old, but almost a quarter (24%) admitted they had already had to adjust their plans as to when they retire, due to factors such as concern about when they will able to claim State Pension and whether this will provide enough to live on.
The findings come in the wake of new legislation to protect employees saving for retirement; part of the ongoing workplace pensions reform that will see compulsory automatic enrolment schemes rolled out over the next few years.
The new laws, which came into effect on 1st July, prohibit employers from offering incentives to staff to abandon retirement saving. These laws, which will apply to both current and prospective employees, forbid actions like making a job offer or higher salary conditional on not joining the company’s automatic enrolment scheme, and form part of the Government’s wider commitment to encourage greater pension saving among the general population.
The message to young professionals seems to be coming through loud and clear from all sides: start saving now, before it’s too late. We will be glad to speak to you and discuss the options available to you.
Sources: http://www.employeebenefits.co.uk/item/15401/23/5/3 , http://www.thepensionsregulator.gov.uk/press/pn12-19.aspx