Personal Finance: Saving for Retirement Is Low on Priority List; Old Hat: Pension Plans Not as Appealing as Splashing out on Luxuries
For those lucky enough to land a cash windfall in 2003, putting the money into a pension will be low on their list of priorities.
Even though people are being bombarded with messages to save more and warnings that they face having to work on past 65, retirement planning does not have the same appeal as splashing out on luxuries, says a survey by Alliance & Leicester bank.
In fact only three per cent of the population would consider putting a pounds 1,000 windfall aside for retirement.
That is in contrast to the 26 per cent who would opt for putting the money into a savings account, 25 per cent would spend it on a holiday, 19 per cent would use it on home improvements and 15 per cent would share it with family and friends.
Given a figure of pounds 10,000 to play with, only seven per cent would consider investing for the future.
Even a windfall of pounds 100,000 would persuade only six per cent to think about their old age.
'It is evident from our survey that pensions do not have the priority in our minds that the Government thinks they should,' said Karen Woods, of Girobank, the business banking division of Alliance & Leicester. …