Recent research has found that saving for retirement is only the seventh most important financial concern for employees in the UK, while leisure and general household costs are among the top priorities.
In fact, the report, published in The Actuary, suggests that saving for retirement only becomes a priority when workers are in their 40s and 50s. It also found that the number of workers with financial worries has risen from 46 per cent in 2015 to 52 per cent now, and retirement confidence 15 years after finishing work has declined from 61 per cent to 55 per cent during that time.
However, despite saving for retirement not being a top priority, the research found that 67 per cent of workers in the UK consider retirement security important – an increase over the last two or three years.
In addition, the findings show that workplace pensions are the main way that almost 70 per cent save for their retirement. These findings come after it was announced that the Government expects one million people to opt out of workplace pension auto-enrolment in 2019, which would mean that a total of 13 million people would not be utilising a workplace pension by then.
Worryingly, this will equate to more than a quarter of current members opting out of auto-enrolment by 2019, and it is thought that planned contribution hikes are thought to be the reason why.
As a spokesman for the research team commented, as the younger generations are set to be in work longer than their predecessors, starting savings at an early age could be extremely beneficial to those who do it.
However, he added that the research shows that employees are looking for their employers to take the lead with their retirement savings.
The study was carried out by LifeSight, Willis Towers Watson’s UK DC master trust.