- Wednesday, 30 September 2009UK consumers that fail to contribute towards a pension before they hit 40, could find it difficult to save enough for a comfortable retirement.
Research from Prudential has found that those people that do not save anything before their 40th birthday will have to save 33 per cent of their annual salary in order to retire on the sought-after rate of two-thirds of their working wage.
Owing to continuing financial commitments however - such as helping children through school or university as well as daily expenses - saving such a large proportion of a salary is very difficult and as such debt help needs could rise.
Martyn Bogira, director of defined contribution solutions at prudential, said that people should aim to save as early as possible.
He commented: "The findings show very clearly that anyone earning an income should try to begin putting money into a pension as soon as possible as the cost of delay is considerable.
He went on to say that the optimum pension contributions for a person starting a plan for the first time at 40 are three times higher than for a person aged 18.
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