Younger workers with no savings
One in four people aged 25 to 49 save nothing at all and have no nest in case of an emergency
Retirees find it much easier to save than people of working age – and they also invested more in Premium Bonds.
One in four people aged 25 to 49 saves nothing at all and has no nest in case of an emergency, according to the YouGov study commissioned by asset manager True Potential. But half of the over-65s have difficulty saving.
The younger generation is facing a savings crisis: two in five are saving less every month due to the rising cost of living. Of those who save, one in five is throwing away less than £50 a month.
Shortly changed: The younger generation is facing a savings crisis, with two in five reducing the amount they save monthly due to the rising cost of living
Only one in ten people between the ages of 25 and 49 have money in Premium Bonds, compared to a third of retirees. Daniel Harrison, CEO of True Potential, is urging the government to do more to help younger generations set aside money for the future, including by scaling up auto-enrollment for pensions and introducing a similar auto-savings scheme on to put.
Currently, private sector employees must contribute a minimum of five percent of their income to their company pension unless they choose not to automatically enroll.
Employers must contribute at least three percent, bringing the total minimum contributions to eight percent.
Harrison says: “By gradually scaling up the automatic retirement rate to 12 percent and introducing a new automatic savings plan that can be increased to a further 8 percent over the next ten years, our overall savings rate would be better off. be tuned. seen in other developed countries.”