Save now 'to avoid expensive loans in the future'
Published On 27 March 2007
People need to begin to plan for their retirement as early as possible to avoid having to take out expensive homeowner loans in the future, an industry expert has said.Despite recent research from AXA which suggests that Brits begin to save for their pension before any other nation in the world, a spokesperson from Saga said that people still need to act sooner.
"Everybody ought to every year be trying to put as much money as possible into the basic tax-efficient savings vehicles, such as your annual Isa allowance," said Steve Ashton, chief executive of Saga personal finance.
"Otherwise you're going to end up falling back onto other devices which will actually cost you money because you end up effectively borrowing money later in life against your home."
However, separate research suggests that people in the UK are still confused about retirement saving. HSBC found that women were particular baffled by pension rules, with 60 per cent not contributing at all to a pension scheme.
"Despite efforts by both the government and the industry to generate more awareness around retirement planning, our research clearly shows that that there is still a lack of clarity over how to go about it - especially among women and particularly stay-at-home mums," said Ian Martin, head of pensions and retirement income at the lender.
