Young people need better financial education to combat generational retirement inequality, with 38 per cent in the UK not starting their pension contributions until age 35 or later, according to Scottish Widows.
According to the data, more than three-quarters or 78 per cent of people believe that the generation before them had greater pensions or better retirement prospects.
More than half or 51 per cent of those surveyed said they would be prepared to make concessions, such as giving up significant life goals or aims, in order to increase their pension account contributions.
The survey also revealed that 66 per cent of respondents wanted to travel during retirement, highlighting the necessity for financial readiness to achieve these aspirations and the gap between expectations and realities, according to Scottish Widows.
Scottish Widows pensions expert Robert Cochran says: “There might be nothing ‘cool’ about pensions, for younger people today, but they’re an important financial safety net and need to be part of financial education, whether that’s at home, at school or at work, to help people make better decisions that will pay off for them at the right time.
“Stripping away complexity and helping people understand how small savings now will translate into things they can picture more clearly in the future, like travel or holidays, using new digital tools (including our pension mirror) and AI are all part of closing the generation gap and helping people achieve their financial goals – they also enable engagement with young people like we’ve never seen before.
“A pound saved into a workplace pension can double from day one thanks to employer contributions, compound interest and tax relief, so while it’s never too late to start saving, one pound saved by someone in their twenties can bring four times as much buying power as a pound saved by someone in their fifties.”
