Over three-quarters of people in their 20s and 30s want to retire by the age of 60 but less than half are saving in a pension, raising fears of an “ostrich generation”, says Skandia.
In a survey of 1,000 people, 76 per cent of 22-34 year-olds say they would like to retire by 60 but only 43 per cent have looked into saving or investing for retirement and 52 per cent believe it is more important to live well now than to save for the future.
It also reveals that 56 per cent of 45-54-year-olds and 54 per cent of 55-64-year-olds wish they had started saving for their retirement earlier.
Skandia head of pensions marketing Nick Bladen says: “A generation of optimists in their 20s and 30s are heading towards retirement poverty, ignoring the true cost of old age and keeping their heads firmly in the sand.”
He says: “There is a vast need and a significant opportunity for financial advisers to help their clients understand why planning ahead for pensions is important. Otherwise, the notion of retiring early, in comfortable wealth and having time and money to spend on luxuries will only ever remain a fantasy.”
Scottish Widows head of savings and investments Gordon Greig says that financial education is the key to raising awareness of the need to save for retirement.