Third of young adults 'have yet to start pensions'

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Third of young adults 'have yet to start pensions'

Ananova, April 23 2003

UK - More than a third of young adults have yet to start saving for their retirement, according to new research.

The Lloyds TSB study contains a poll among 18 to 34-year-olds which found widespread recognition of the need for a pension but less evidence they were taking practical steps.

Sixty-per-cent of those questioned gave "lack of cash" as the main reason for not saving for their retirement, the same number who said they were worried about not having enough money when they are old.

The poll of just over 600 respondents found 38% had not started saving for their retirement, and 19% had no immediate plans to do so, even though 45% agreed that people aged in their 20s should begin a pension.

Diann Hartnell, head of savings at Lloyds TSB said: "These alarming statistics suggest that, whilst the penny has finally dropped that saving for retirement is important, many of the nation's twenty and thirty-somethings are adopting an 'ostrich mentality' when it comes to pension provision.

"Lack of financial know-how coupled with a desire to enjoy their hard-earned cash now means that young people could risk an impoverished old age in the future."