Jump to Main ContentJump to Primary Navigation
Top

Are you putting enough money towards your retirement?

Piggy bank

The idea of saving for retirement when you’re a young and fabulous twenty-something feels a little boring, and kind of pointless, right? Old age is too far off to worry about, after all.

Except, as terrifying as it sounds, retirement is coming for us. And, although we’ve only just started earning some actual money, a new study has given a warning nod to millennials everywhere about what they should be putting away.


Read more: Bad money habits that are costing you more than you realise


Research from investment and pensions specialists Scottish Widows has confirmed that we will need around £23,000 a year to live on once we’ve retired. To achieve this, we need to start saving approximately 12% of our annual salary (including contributions from employers) from the age of 22.

Unfortunately, though, hardly anyone is actually doing this: in fact, seven out of 10 young people are failing to contribute the recommended amount to their pension. 

Young woman shopping online

Technology is making it all to easy to spend our hard earned cash - online shopping anyone?

70% of people taking part in the survey admitted to not saving enough for their old age, partly because of student loans taking a wedge of their wage. Others reported that they were struggling with unpaid credit card bills.

So why is it that our grandparents reign supreme when it comes to scrimping? Well, according to the report, technology is to blame (which sounds like a good enough scapegoat to us).


Read more: “This is awkward… can I have a pay rise?”: The secret to successful money talks


Apparently, the digital nature of our lives has turned us off from saving. As a result, says Scottish Widows, “the industry must make significant investment in digital innovation.”

“We need to reflect the way young people engage and do it quickly or we risk turning off a whole generation to long-term savings,” they said.

Young woman saving money

To save or to spend, that is the question

Speaking to the Daily Mirror Catherine Stewart, a retirement expert at Scottish Widows, explains: “While retirement may feel like a long time away for those in their twenties, it's really important they start to think about it as soon as possible.”

“Using the right platforms, technology and content to engage young people in formats they appreciate is a critical first step.

“If we don't get this right then it is far more difficult for them to reach their desired savings levels in their 30s and 40s.”

So, if you’re guilty of burying your head in the proverbial sand, it could be time to actually read those pension letters your work has been sending you and take another look into how much you are contributing to your plan. 

Images: iStock

Related

doyoutravel.jpg

Insta-rich travel couple share their money-making tips

money_raise.jpg

Avoid these two common mistakes when asking for a pay rise at work

rexfeatures_8861370u.jpg

Emma Stone thanks male co-stars for helping her to achieve equal pay

More

The Netflix shows you’re most likely to devour in 24 hours

You, my friend, are a ‘binge racer’

by Nicola Colyer
18 Oct 2017

There’s a psychological reason you’re in love with Starbucks’ red cups

It’s not just because Christmas is coming

by Gemma Crisp
18 Oct 2017

Have a wonderfully macabre Christmas with this anti-advent calendar

Bah humbug

by Megan Murray
18 Oct 2017

Nigella Lawson says this is the next big food trend

Will this steal avocado’s crown?

by Nicola Colyer
18 Oct 2017

Men are supporting the #MeToo campaign by tweeting #HowIWillChange

“Guys, it’s our turn.”

by Moya Crockett
18 Oct 2017

The new sanitary towel advert finally showing RED period blood

Because what runs down your leg in the shower ain’t blue

by Amy Swales
18 Oct 2017

“France banning wolf-whistling is a good start – but it’s not enough”

We can’t kid ourselves that this kind of gesture will change women’s lives.

by Moya Crockett
18 Oct 2017

The UK's first permanent avocado restaurant is coming to London

It’s everything we avo wanted

by Megan Murray
18 Oct 2017

We really need to talk about what happened on Bake Off

We’re going to need a moment to process this

by Amy Swales
18 Oct 2017

Get free tickets to see Call Me By Your Name

17 Oct 2017