News
March 2007
Saving and the young
A recent poll of members of company pension schemes has found high levels of caution and misunderstanding towards traditional areas of savings.
The survey, by Alexander Forbes Financial Services, found that 44 per cent of 16 to 24 year olds said they would invest in cash. Across the age range of the survey residential property was the most popular investment choice.
Given the freedom to choose 34 percent said they would choose to invest in residential property with just 12 percent selecting equities.
The survey also found that 40 per cent of the scheme members were unaware that they could take a 25 per cent tax-free lump sum when they retire. Of those that did:
- 49 per cent would use the money for an income,
- 26 per cent preferring a holiday, and
- 20 per cent saying they would pay off debts.
If you are confused about your savings options have a look at the money made clear website provided by the Financial Services Authority.
You can also find out more about planning for retirement in the I am planning ahead section of this website.