Saving and investing news
Young 'put off saving for retirement'
19 March, 2008
Young people do not think about investing in a pension until it is almost too late, one expert has claimed.
According to Des Hamilton, technical director of the Pensions Advisory Service (TPAS), the fact that retirement is so far off means that many young people find it difficult to bring the issue "within their financial horizon".
He said: "It's just something that's so far off and so remote compared to their next holiday or their next car or whatever it may be that immediate expenditure is more their focus.
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"Looking beyond that, they'll be thinking about a mortgage."
Hamilton added that most people do not consider a pension a serious issue until they are in their 40s, by which time it can be hard to save enough for their retirement.
Earlier this month, Anna Sofat, of AJS Wealth Management, claimed that young people kept too higher a proportion of their assets in cash and should diversify their investments.
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