Pension warning for non-savers

Research suggests under-35s have big dreams but few assets.

Over half of those under 34 do not save anything at all but say they do not expect to lose out on foreign holidays, satellite TV and gym membership as they get older.

According to the YouGov poll, young people in the South West are on track for a bigger shock than others if they do not back their plans with hard cash.

They are followed closely by those in Scotland and the West Midlands who also show little evidence of saving for retirement.

Young people in Scotland are most likely to believe they can afford their current lifestyles when they stop work (84 per cent), compared to just over a third in Tyne Tees.

The study of nearly 2,000 people found the sleepiest savers are those in the South West where 66 per cent of under-34s have not started putting money aside for later life.

They are followed by just over half of people from the West Midlands and the North West.

In comparison, the Welsh are the winners when it comes to saving, but even a third of them are not setting anything aside by the age of 34.

Paul Banfield of Best Advice Financial Planning Ltd said: "It's great that young people want more and the message to them is simple. You can take steps today to set yourself up for the kind of life you want tomorrow.

"But if you don't wake up to this opportunity and simply cruise towards retirement with your eyes closed, you may have a rude awakening."

In most parts of the country, at least 50 per cent of those questioned said they expected to be able to run a car during retirement, an indication that this "luxury" is increasingly regarded as a "necessity".

Pensions Minister Mike O'Brien warned young people that work and saving should go hand in hand, insisting pensions were not "just for pensioners" but are also a "young person's issue".

He added: "If young people don't have a save now attitude they could miss a trick.

"Pension pounds work harder the earlier you save. A pound saved at 20 could be worth up to 60 per cent more at retirement than the same pound saved at 40."

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