Just a quarter of Brits make pensions their priority
Published On 28 November 2006
Just a quarter of Brits (22 per cent) have made saving for their pension one of their top financial priorities, new research has found.Figures from Alliance Trust Savings have shown that consumers' financial priorities change during their lifetime and that despite industry calls, saving for a pension fund is not always the biggest priority.
The company maintains that with the new flexible rules on pensions consumers are able to consider their savings and investments in stages.
People in their 20s are most preoccupied with savings as much as they can, with 30 per cent stashing the cash for a property and 32 per cent saving for a specific purchase.
Between the ages of 30 and 50, consumers are most concerned with paying off their mortgage (54 per cent).
Once over the age of 50, Brits focus on saving for their retirement (19 per cent), protecting themselves against ill health (13 per cent) and planning their inheritance (14 per cent).
Hyman Wolankski, Alliance Trust spokesman, said: "Not everyone has to start saving into a pension scheme as soon as they can, contrary to popular belief. A pension has clear tax advantages but will not be right for many younger people struggling to juggle their debts, day-to-day living costs and what to do with any remaining disposable income.
"These people often require more flexibility than a pension can offer them and simply telling them to lock this money away will put many off taking any action on long-term saving.
"Greater pensions flexibility brought about in April means more people can consider saving for their future in stages, balancing the differing benefits of pensions and ISAs in terms of flexibility and the tax breaks on offer, as they progress through their working lives."
