Early start to retirement saving is best

The majority (89%) of respondents said starting to save for retirement under the age of 25 is advisable, according to research by Friends Life.

The research, which surveyed 160 of the pension provider’s corporate pension scheme members, also found that 49% of respondents began paying into their pension before the age of 25 and 78% before the age of 35.

The research also found:

68% of respondents said they pay the maximum possible amount into their pension, while one in 10 said they did not know if they did.
68% said they will increase their contributions in the future.
64% said they plan to retire around 60-65 years old, while 24% have revised their plans as to when they retire due to factors, such as when they will receive a state pension and concerns about having enough money to live on.

Martin Palmer, head of corporate benefits marketing at Friends Life, said: “It’s interesting that so many respondents would recommend starting a pension before the age of 25.

“While employees at the start of their careers will have other financial commitments, perhaps saving for a house deposit or repaying student debt, the vast majority of respondents advocate starting retirement saving at an early age.”