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The vast majority of young people are failing to save for their retirement, choosing instead to use their savings for a deposit on a house. Research carried out by Nationwide has found that a whopping 95% of workers under the age of 35 are not saving any money for their retirement. Instead, the younger generation are choosing to use any spare cash to save money for immediate concerns, such as a mortgage deposit. The research found that more than a third of workers aged 18 to 35 are saving so they can either move house or take their first steps on to the property ladder. A further 31% of the young people surveyed said they were saving money for protection should their circumstances change, such as losing their job. Encouragingly, many young people are saving so they can pay off any outstanding debts, with 16% saying they are saving for this reason. “We are encouraging people to start saving when they are young,” said Richard Marriott, Head of Savings at Nationwide. “Encouraging young people to adopt a savings habit early on is vital. Just putting aside a small amount on a regular basis can make a huge difference,” he added. And while many companies offer pension schemes to help people save for their retirement, research by insurance company Aviva has found that many financial advisers don’t think younger workers can afford to save. The research found that 80% of financial advisers don’t think workers under 35 have enough money to start saving for a pension, while 72% said that younger workers have other financial priorities. The majority of financial advisers surveyed said that younger workers’ main financial priorities were buying a house, paying off debts and paying off a mortgage. If you are trying to save money, whether it is for a mortgage deposit, to pay off debts or move house, you can compare savings accounts with Money Expert.
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