A recent survey has found that today’s biggest financial regret for baby boomers is not saving enough money for their retirement throughout their working lives.
The pension company Standard Life’s report shows that it isn’t just the younger generations who need to be concerned about saving for retirement. 20% of people aged over 55 who were questioned for the survey admitted that their main money regret was not saving adequately for retirement.
In addition, a quarter of the people surveyed across all the different age groups who are currently contributing towards a personal pensions instead of a company pension, said they regretted not saving towards retirement earlier.
Julie Russell, a spokesperson for Standard Life, pointed out that younger generations can learn from the hindsight of today’s baby boomers regarding pension savings. She said: ‘If 20 per cent of baby boomers who are retiring or are already retired say they wish they’d started saving for their retirement earlier, then we would be foolish not to take their advice.’
Amongst other money regrets listed by those taking the survey, debts on store and credit cards, hanging on to items they had no use for instead of selling them, and spending so much money on socialising featured highly.
For those who still contribute towards the more generous defined benefit pension schemes, which is currently approximately 60% of all UK company pension schemes, only 13% were unhappy with how much they were saving towards their pensions, in comparison to 25% of people who had non-workplace pension schemes.
The pension company said that contributing £100 a month towards a pension when aged 25 would mean an extra £1,500 income each year from an annuity, than if you started saving the same amount each month once you’d turned 40.
Ms Russell’s advice for those who don’t feel they have saved an adequate retirement income is that they should take measures to bolster their savings by putting away as much as possible into high interest savings account or ISA.
It is likely that more and more adults will feel this way in the future as a recent report published by Scottish Widows found that nearly 15 million people in Britain were not currently saving anything towards their retirement, with most citing lack of money as the reason they were neglecting their financial futures.