Aug 7 2008
A study released by Legal & General has revealed delaying saving for retirement could mean a shortfall of several thousand pounds.
To built nest egg savings of £20,000 per year from the age of 60, people who begin saving at 35 years old will need to put aside £423 every month, the research showed.
If saving begins at age 25, however, less than half needs to be invested per month to achieve the same amount – a sum of £205.
A delay like this could add £40,000 to the total contributions payable over a working lifetime, the study concluded.
Wealth policy director at Legal & General Adrian Boulding said people should start saving for retirement from a younger age to avoid the risk of paying more later on.
"When you are 25 or 30, retirement seems like a long time away but if people begin to save even a relatively modest amount they can look forward to a much more comfortable retirement," he advised.
He added the rising cost of living could push pensions down the list of priorities.
Mr Boulding's comments echo those made by Prudential recently.
