The Department for Work and Pensions (DPW) has carried out a survey which has revealed that as much as 80% of young people aged 18 to 24 don’t have a pension plan. About 50 % of 25 to 34-year-olds didn’t start investing into their pensions, although the majority of them did admit that they found it to be the most suitable way of ensuring a financially secure retirement.

Although the government is making desperate attempts to popularize pension planning when the issue of lack of provision is burning, in particular among the category of people on low income, young UK citizens are the most likely to put off saving money for the time when they stop working.

Another survey conducted by the Association of British Insurers (ABI) has shown that despite increasing optimism about the recovery of British economy of the last quarter the majority is convinced the benefits of setting aside money for retirement have decreased in the past year.

At the present time, nearly 44% of people believe the economy would improve during the current year, whereas in the end of 2009 only 5% were optimistic about such an improvement.

Debt repayment has also become more sluggish over the past quarter. As few as 12% of respondents said they had increased the rate at which they were repaying their mortgage debt, compared with 24% in the end of 2009. Nevertheless, 30% responded they increased the rate of repaying unsecured debt, a slight change from 33% three months ago.

Rebecca Driver from the ABI said that it would be a harsh challenge to handle the level of insufficient saving, but it should be addressed in order to avoid sweeping pensioner poverty in the country. She added that it was the government’s task to encourage right attitudes to money.


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