Graduates need to start saving for their retirement now, a leading financial institution has claimed. HSBC has said that the majority of people in their 20s are not currently paying into a pension fund and that this could impact on their savings. Figures released by the bank state that a 21-year-old paying into a pension fund could accrue savings of more than £330,000, equating to an annual pension of around £12,700. However, young people putting off saving until they are 26 could end up with a pension that is 30 per cent smaller than their peers who started putting money aside for the future as soon as they joined the working world. Speaking to the Observer, Ian Martin, head of pensions and retirement income at HSBC, said: "For graduates starting work for the first time, retirement seems a long way off and their pension isn't a priority. "But the day you start earning, you should start saving for retirement. If you delay, before you know it, ten years will have gone by and you still won't have started a pension." HSBC has added that anyone putting off starting a pension fund until they are 30 will be left existing on 50 per cent less than someone who started as soon as they graduated.
What are these?
Follow on Twitter
Link to us
Read our Blogg
Connect with us