One-fifth of Brits put off from starting pensions

Monday, November 23rd 2009

Almost 20 per cent of Britons are put off by the word 'pension' when it comes to retirement finances, according to a new study.

The YouGov poll commissioned by AXA also revealed that almost one million of those aged between 18 and 24 could lose out on £44,362 worth of pension funds each if they continue to delay starting up an account by five years.

Nearly one in ten of all of those surveyed said they believe the term 'pension' is too old-fashioned, with 72 per cent of the 18 to 24 age group stating that they associate the word with old age.

Mike Morrison, head of pensions development at AXA, said that consumers may need a "compelling" phrase or word for pensions to get them to start saving.

"It's clear that we need to get younger people thinking about their future financial stability much earlier," he added.

According to a recent survey by the Chartered Institute of Personnel and Development and Black Rock, the most common reason for workers not joining a company pension scheme is that it is not worth it if they are not planning to stay with that firm for very long.