HSBC: Grads risk half their pensions by delaying

24 October 2006
According to HSBC, graduates leaving university to enter the working world who delay making contributions to a pension fund until they turn 30 are risking half their final retirement income.

The research showed that nine out of ten 16- to 24-year-olds were not paying into a pension scheme and 50 per cent said they thought they were too young to prioritise their retirement savings.

The bank said that delays of even just a couple of years during a person's 20s could make as much as a 31 per cent difference to their final savings total released upon retirement.

"There has been a great deal of talk about pensions recently and it appears that older workers are starting to hear the message about the importance of planning for their retirement," said Ian Martin, head of pensions at HSBC.

"But for graduates starting work for the first time, retirement seems a long way off and their pension just isn't a priority.

Mr Martin noted that even small contributions by graduates each month, £75 for example, could make a huge difference in the total savings a person could have access to by the time they reach retirement age, rather than if they started at 30.

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