Meanwhile, More Than 90 Per Cent Of Those Who Do Have A Pension Have Taken Out A Scheme Via Their Work

Category: Finance, Financial Planning.

Millions of young people could be putting themselves under financial strain in later life, new figures indicate. Should they not set up a scheme until they are older or even fail to do so at all, such consumers could be liable to find themselves under pressure to meet demands on their spending such as loans, utility bills and mortgages after giving up work.

In a study released by Endsleigh Financial, it was suggested that some 41 per cent of those under the age of 35 do not have a pension account. Out of those young people who do not have a pension scheme, more than half( 52 per cent) claim to have given no thought towards getting such a product. Further research from the firm also revealed that pension take- up is slightly higher among those in the 31 to 35- year- old age bracket, as 65 per cent of people in this age group have such a product. Meanwhile, about a third( 32 per cent) state that borrowing demands such as credit cards and personal loans are the reason for why they do not have a scheme. In comparison, just 58 per cent of consumers under the age of 30 have taken out this savings scheme. Among 31 to 35- year- olds this figure rises to 28 per cent.

An estimated 18 per cent of those aged between 23 and 30 cite problems paying back credit cards as the main reason they do not have a pension scheme. Meanwhile, more than 90 per cent of those who do have a pension have taken out a scheme via their work. Young people in their 20s need to realise that pensions are not just for the over- 30s and that now is the time to get into a savings habit . "Britain reportedly has the lowest state pension in Europe, so it is increasingly likely that today s 20 and 30- year- olds without pensions, due to increased life expectancy, could face 20 to 30 years with little or no income when they retire. Elaine Etheridge, spokesperson for Endsleigh Financial, said: "The results of our pensions survey are concerning, as they show significant numbers of young people across the country are not even considering having a pension. It s never too early to start a pension, whatever you can afford to contribute and contributions can then go up as earning power increases. " Consumers worried about their ability to save an adequate amount of money in a pension fund, may wish to, however consider applying for a low- rate personal loan. Meanwhile, a recent Birmingham Midshires study showed that more young people are taking steps in securing their financial future as over the last six months the number of 18 to 24- year- olds opening up a savings account has doubled. In using such a loan as a means of debt consolidation, borrowers may be able to pay off money owed to a number of creditors, especially if they owe across a number of credit cards and loans.

In turn, it was claimed that people in this age group are the most likely to have opened up such a product. However, again those worried that they cannot put as much money into schemes as they would like may wish to consider taking out a loan to help free up disposable income.

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