Young save more for pension than any other group

Graham_Devon

A bit tired of "bash the young person for buying a mobile phone" posts, I came across this snippet today on an article surrounding boomers having it all.

While membership of final salary schemes continues to fall, automatic enrolment means that the number of people with some pension is increasing. Instead of a minority having very good pensions and others having little or no retirement savings, the vast majority of the younger generation should have some provision for later life. The hard part is to ensure it's enough to give them an acceptable retirement income. We suggest minimum savings for retirement of 12pc of earnings, including employer contributions.

What's encouraging is that the latest data from our 2014 Retirement Report suggests that the younger generation is adopting a pragmatic approach to planning for later life – perhaps recognising that they will not have it as easy as their parents. More than 60pc of those under 30 are now saving adequately for their retirement, putting away an average of 13pc of their salary – higher than any older age group.

So seems the young are not as wasteful as many try to make out.

http://www.telegraph.co.uk/finance/personalfinance/comment/10972956/Baby-boomers-lap-up-the-old-age-subsidies.html

CLAPTON

Graham_Devon wrote: »

A bit tired of "bash the young person for buying a mobile phone" posts, I came across this snippet today on an article surrounding boomers having it all.

So seems the young are not as wasteful as many try to make out.

http://www.telegraph.co.uk/finance/personalfinance/comment/10972956/Baby-boomers-lap-up-the-old-age-subsidies.html

all seems a bit unlikely

needs a lot more facts and figures

AndyGuil

This is good news. All as a result of the law change forcing at least 9% pension to paid for all but very small companies. Soon this will also apply to very small companies too.

Edit: 8% (although most large employees do far more than this).

CLAPTON

AndyGuil wrote: »

This is good news. All as a result of the law change forcing at least 9% pension to paid for all but very small companies. Soon this will also apply to very small companies too.

what 9% is that then?

IveSeenTheLight

AndyGuil wrote: »

This is good news. All as a result of the law change forcing at least 9% pension to paid for all but very small companies. Soon this will also apply to very small companies too.

I thought it was a 3% pension minimum contribution required by law.

It's nowhere near the recommended 12%

J_i_m

I've been contributing towards my pension for about ten years now, or since my early twenties.

TBagpuss

it will be 8% by 2018 - 4% from employee, 3% employer, 1% government - but still short of the 12% they recommend (and that seems a little on the low side, to me)
I agree that 60% of under 30s sounds very high - I wonder how they selected their sample.

Masomnia

Why does it sound high to people?

Are their better stats available or is it just prejudice?

AndyGuil

Sorry. Meant 8%. A lot of companies are following this guideline already.
3% employer
4% employee
1% tax relief.

A lot of companies offer greater ratio of employer to employee ratio, 2:1 + is common.

CLAPTON

Masomnia wrote: »

Why does it sound high to people?

Are their better stats available or is it just prejudice?

it seems obviously wrong

does it include the unemployed?
the self employed ?
students?
SAHMs?


even for people in full time salaried employment it seems high

lulu_92

I opted into my work pension in April as I was 21 and couldn't be automatically opted in. I contribute 5% of my gross pay and my employers match the 5%.