Graduates delay pension payment process
Published On 23 October 2006
Many graduates are delaying paying in to a private pension and in doing so, are potentially losing thousands of pounds, claims a new report.A study by HSBC Bank has found that university leavers are in danger of seeing their potential retirement pot halve if they delay making payments until the age of 30.
The report asserts that a 21 year-old who pays £75 a month into a stakeholder pension could see a return of £337,000 upon retirement, compared to someone who begins at 30, who would net just £171,000.
Some 90 per cent of 16 to 24 year-olds are not paying in to a pension, the survey found.
"For graduates starting work for the first time, retirement seems a long way off and their pension just isn’t a priority", commented Ian Martin, HSBC's head of pensions and retirement income.
"However, with the basic state pension currently only paying £84.25 per week - and likely to decrease over the years - no-one can afford to put their pension on the back-burner."
Around one in 12 men expect their retirements to be funded by their partners, research from Zurich claims.
