Young people 'failing to set up pensions'

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Young people 'failing to set up pensions'

Mon 23rd Oct 2006

Graduates could be risking half of their pension total if they delay their contributions until the age of 30, according to HSBC.

The research discovered that 50 per cent of 16 to 24-year-olds think they are too young to begin thinking about contributing to a pension.

Allied to this, 90 per cent of this age group along with 44 per cent of 25 to 34-year-olds, are not currently paying into a pension scheme.

Ian Martin, head of pensions and retirement income at HSBC, explained: "There has been a great deal of talk about pensions recently and it appears that older workers are starting to hear the message about the importance of planning for their retirement.

"But for graduates starting work for the first time, retirement seems a long way off and their pension just isn't a priority."

Mr Martin continued to explain that with the basic state pension being £84.25 and likely to decrease, pensions should be at the forefront of people's minds.

HSBC's stakeholder pension requires the individual to make a payment of £20 and the number of contributions is entirely up to the individual. The maximum contribution is £3,600 gross per year.

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