A new study conducted by AXA shows that over a third of people invest in property as an alternative way to save for the future.
The survey revealed that several life triggers influence working Brits to start saving for retirement earlier than anyone else. The most common of these is joining a company with a good pension scheme (68 per cent). This is closely followed by getting married or having a serious relationship (45 per cent).
However, a significant proportion of both retirees (35 per cent) and workers (43 per cent) said turning 50 is a major trigger to start saving - leaving it too late to generate a decent retirement income without substantial contributions.
The research shows that people have found alternative ways to save for the future including opening personal pension schemes (45 per cent), putting money aside in equities and bonds (45 per cent) or investing in or property (34 per cent).
Of those that have started saving for retirement 61 per cent contribute directly through their company's scheme, whilst 58 per cent are spurred on by voluntary contributions from their employer. Interestingly, and perhaps this is a reflection of the current pensions climate, the percentage of retirees that contributed via their employer or an employee contributory scheme was higher, at 70 per cent and 71 per cent respectively, suggesting that company pension schemes have a vital role to play in encouraging the savings habit.
Steve Folkard, head of pensions and savings policy: "It is encouraging to see that Brits lead the way when it comes to retirement planning but not surprising given that state benefits in the UK provide a very modest retirement income compared with many other countries. However, in spite of this, there are still a worrying number of people who have still not started saving into their pension."
