Young 'not saving for future debt'
Published On 3 July 2007
Young people could face debt in the future because they are not planning their savings effectively, a new report suggests.Figures released by retirement specialist Tomorrow show that 59 per cent of people in their 20s have no savings plans in place to cover their future.
Around two in five young (39 per cent) people think that it is alright to think about future savings nearer the time and 20 per cent are banking on inheritance to help them out of debt during their retirement.
"Our research has revealed that, despite warnings from the government over the pensions gap, and the plan to raise the state retirement age, the UK's twenty-somethings are still not aware of the dangers of planning too late for their retirement," warned Kirsty Macpherson, Tomorrow spokesperson.
"With the young not learning from the mistakes of the older generations and not making adequate preparations for their retirement, the current pensions crisis looks set too continue indefinitely.
"If younger generations were to give more consideration to their future needs they could easily avoid an uncomfortable retirement."
Recent research showed that increasing interest rates were also forcing people to miss payments on things like loans and utilities, making it even more unlikely they will save for the future.
