Research by Nationwide Building Society indicates that young people are failing to save for their retirement.
It found that 95% of younger workers aged between 18 and 34 do not put cash aside for their old age. This excludes money saved in a pension scheme. However, the number of people aged 18 to 35 who do not save via a pension scheme is more than 80%, according to Mintel March 2011 statistics.
Instead, they use any spare cash to save for more immediate concerns, such as saving for a deposit to allow them to move home or take their first steps onto the property ladder. A total of 34% of young people in this age bracket save for this reason.
The survey of 1,316 Britons also found 31% of young people save money in case of a change in circumstances, such as losing their job. A further 16% save with the aim of paying off their debts.
Richard Marriott, Nationwide’s head of savings, said: “Encouraging young people to adopt a savings habit early on is vital. Just putting aside a small amount on a regular basis can make a huge difference.