British workers start planning for their retirement a lot earlier than their global counterparts, new research has revealed.
A study into retirement by insurance firm Axa found that the average Brit starts planning for their retirement at aged 28 – five years earlier than the international average. However, some are still waiting until they are well into their 40s and 50s to think about retirement income, leaving themselves in danger of not building up a sufficient retirement pot.
On average, workers in France and Spain do not start saving for retirement until they are 34, while those in China and Hungary begin to build their pension pot at 35 and 38 respectively.
The Association of Consulting Actuaries has advised 25-year-olds to save 15% of their annual salary every year to guarantee a comfortable retirement.
Several life triggers influence working Brits to start saving earlier than anyone else, with the most common being joining a company with a good pension scheme, followed by getting married or having a serious relationship, according to Axa.
The research also suggested that company pension schemes have a vital role to play in encouraging the savings habit 61% contributed directly through their company’s scheme.
Steve Folkard, head of pensions and savings policy at Axa, said: “It is great to see that so many people in the UK see saving for retirement as a priority. However, it is worrying that against a background of declining employer provision, many are leaving it later to begin planning than they did before.
“Well supported employer provision remains the best way to encourage people to save for their retirement. Any measures which weaken existing employer provision will seriously undermine the retirement future of many of today’s savers.”
The research was conducted among a sample of 305 working people aged 25 and over, and 301 retired people aged under 75 across a sample of 26 countries.