Jul 12 2006
Young workers prefer to clear debts or go on holiday rather than considering what to do when they retire, according to the latest research.
A survey by consultants JP Morgan Invest showed one in five workers aged 18 to 34-years-old say they have never thought about a pension although half admitted to being worried about how they would fund their retirement, as reported in Personnel Today.
In May, the government confirmed plans to set up a National Pension Savings Scheme (NPSS) which would require employers to pay in three per cent, employees to contribute four per cent of their wages and the government itself would add one per cent.
However, a quarter of young workers say they would opt out of the NPSS to be able to pay off their bills first.
"Understandably, people in the 18-34 bracket would rather concentrate on their short-term financial obligations rather than look at the bigger picture and think about what standard of living they want to enjoy when they retire," JP Morgan Invest director, Jonathan Watts-Lay told Personnel Today.
"This is particularly relevant in the current climate of record mortgage and credit card debt, as people might have no option but to opt out of a national pension scheme to cover pressing debts."
Barclays Bank offers a range of accounts for young and old saving and investing for the future, for more information click on our free brochures page.
