Pensions  

Not saving enough for retirement is biggest fault, says Partnership

Not saving enough generally, or into a pension, makes up the lion’s share of the biggest financial mistakes people make, according to new research conducted by Partnership.

In a sample of 2,000 adults, 40 per cent expressed regret over a lack of savings provisions. The sentiment was shared by half of those aged between 18 and 39, and 34 per cent of people aged 40 and over.

Meanwhile, nearly one in five said they did not save enough into a pension. The proportion that cited inadequate retirement savings as their biggest mis-step increases to 22 per cent among those aged 40 and over.

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The research also found that these individuals are twice as likely to have put money into an investment that has not performed, compared with those aged between 18 and 39.

Bi ggest financial mistakes

All

18-39

40+

I did not save enough

40%

50%

34%

I did not save enough into my pension

19%

14%

22%

I got myself into debt by borrowing too much/due to circumstances

15%

15%

16%

I was not able to work more or earn more in my chosen occupation

11%

12%

11%

I made poor financial choices linked to family/ friends, for example lent money or took advice

10%

10%

10%

I put money into an investment that did not perform

9%

5%

12%

I delayed buying a house

7%

6%

7%

I got married and subsequently divorced

7%

1%

10%


In addition, 15 per cent said that getting into debt was their biggest error, 10 per cent of the sample cited making poor financial choices linked to family/friends, and 7 per cent highlighted getting married and subsequently divorced as being their largest blunders.

Mark Stopard, head of product development at Partnership, said: “Not saving enough, especially into a pension, was the main regret for all age groups – a problem which implies that either they do not earn enough, or that they don’t have a firm handle on their finances. While it is relatively easy to make minor financial errors, the fact that one in 10 people cite issues around salary and employment levels adds weight to the first argument, and is worrying as it suggests that, for some, ‘mistakes’ are almost unavoidable.”

Adviser view

Denis Mitchell, managing director at Cornwall-based The Demelza Group, said: “I think there is a large percentage of the population who say they will start saving tomorrow. But tomorrow never comes, and when they actually start to save, it is not enough.”