Only 29 per cent of Brits actively saving towards their pension
Only 29 per cent of British adults are actively saving towards their future and over half (58 per cent) wish they had invested in their retirement at an earlier age, new research from savings and mortgage provider Nottingham Building Society has revealed.
The survey of 2,000 UK adults looked at the biggest saving priorities for the nation, and what age we wish we had started investing in different aspects of our lives, from health and careers to money management.
Despite such a large section of the population not saving for life after work, a retirement fund was ranked as the biggest saving priority.
The top ten most important saving priorities for Brits are:
- Retirement fund
- ‘Rainy day’ fund
- House deposit or increasing equity
- Holiday fund
- Funds to partake in my hobbies / outside of work activities
- Debt repayments
- New car
- Children’s saving account
- Children’s education
- Wedding fund
Debt repayments didn’t make the top five saving priorities for the nation, however, of the respondents who are currently saving, paying off or planning to pay off their debt, this saving was ranked second in importance, indicating that those who are currently in debt are prioritising this over saving for other factors such as a house deposit (ranked fourth in importance), or a new car (ranked seventh).
However, when it comes to what Brits are actually saving for, the most common goal was a ‘rainy day’ fund, with over a third (34 per cent) of Brits currently saving towards this. Interestingly, more than double are saving towards a holiday (29 per cent) than a house deposit (13 per cent), despite a house deposit being ranked as a higher priority overall.
When it comes to the ages the nation wish they had started investing in different aspects of our lives, Brits found that they wished they had invested towards their retirement at age 31, when on average they actually began investing at 39 - almost a decade later. On average, UK adults begin saving towards a ‘rainy day’ fund at 34, despite wishing they had started at 28.
Jenna McKenzie-Day, senior savings manager at The Nottingham, said: “Our research found that on average, homeowners wish they had begun planning to buy their first home three years earlier than they started, with a similar picture being painted for those saving for their future. Interestingly, it found that Brits wish they had started their retirement fund a staggering eight years before they actually began saving.
“Whether you are saving for your first home or starting your retirement plans, products such as the LISA, which is available for those looking to plan for their future, offer a 25 per cent government backed bonus on annual savings up to £4,000, those extra eight years of savings could have increased their future savings by a potential £8,000 - making it the perfect product to start your saving journey.”