Rise in pension savings for under-30s

According to research carried out by Scottish Widows, almost two-fifths of workers under the age of 30 are now saving adequately for retirement.

The report measures the number of people putting more than 12% of their income towards their pension, which Scottish Widows recommend as a minimum for adequate savings.

For individuals aged between 22 and 29, the number of people saving a minimal of 12% of their income increased from 30% in 2017 to 39% in 2018.

Across all age groups, 55% of UK workers are saving adequately for retirement.

Robert Cochran, a retirement expert at Scottish Widows, called the figures “encouraging” and noted that auto-enrolment has played a really important part in the rise.

However, the research also showed that more could be done to include younger people in workplace pensions.

More than a fifth (21%) of under-30s are not saving anything at all for retirement, with a further 20% saving ‘seriously less’ than the recommended amount.

The government has already proposed to lower the minimum age for auto-enrolment from 22 to 18, which could bring an estimated 900,000 people into retirement saving.

Get in touch with Mercian Accountants to discuss your pension savings, call us on 01743 562430