With the UK facing a pensions crisis, new statistics from a study commissioned by financial services company Edward Jones has shown that just under a third of people aged 45 – 54 and 12 per cent of those over 55 have not yet started saving for their retirement.
But while this appear to be a stark prophecy for the future, the figures also reveal that nearly half (46%) of people questioned in the 25 to 34 age group and 57 per cent of those aged 35 to 44 have indeed made provisions.
Andrew James, retirement planning manager at Edward Jones comments on the findings: “The most worrying aspect is the high proportion of middle aged people who have made no provision for their retirement. They are the very category who will find it most difficult to make adequate provision simply because time is running out.
“Those people are from a generation brought up to believe the state would provide them with a good standard of living in their retirement which is simply not the case today. I fear many of them may be working past normal retirement age.”
The survey also shows that the majority of aged over 55 who have planned for retirement started saving when they were between 35 and 50.
“It is vital both the government and all those involved in the pensions industry do all they can to keep driving the message home,” continues James.
“We would also like to see clearer guidelines on pension rules to allow the industry time to talk to people about saving for the long-term and helping to educate individuals in the UK about how tax efficient saving for retirement can be - and the earlier people start the easier it will be!”
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