More than half of twenty-somethings are unprepared for retirement

03 July 2007
The majority of UK twenty-somethings have no plans to prepare for their retirement, research from retirement specialist, Tomorrow, has found.

Many pensioners are finding that they are coming up short and facing dire financial problems as a result of being under prepared, but the research has shown that many twenty-somethings have no intentions of learning from the previous generation’s mistakes.

The study reveals that four in ten people aged 18-24 will not worry about it until nearer the time. Twenty per cent in this age group are placing their hopes on an inheritance to fund their twilight years. In total, this means that 59% have no retirement plans in place.

Tomorrow spokesperson, Kirsty Macpherson, highlights the dangers of not being prepared when the time comes to retire. “Our research has revealed that, despite warnings from the Government over the pensions gap, and the plan to raise the state retirement age, the UK’s twenty-somethings are still not aware of the dangers of planning too late for their retirement.” she said.

When the shortfall eventually becomes clear, it will be too late, with one third of retirees currently facing low income because they failed to adequately prepare themselves for the future. One in five face having to do part-time work.

Starting a pension too late seems to be a consistent reason for the deficit, with 23% of those aged 50 and older admitting to not starting to save for retirement until they were between the age of 41 and 50.

Ms Macpherson commented: “With the young not learning from the mistakes of the older generations and not making adequate preparations for their retirement, the current pensions crisis looks set too continue indefinitely.

“If younger generations were to give more consideration to their future needs they could easily avoid an uncomfortable retirement.

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