Important note: The information in this section is intended for use by journalists only and customers should not use it to make financial decisions. Please remember that information in past press releases may no longer be current

• Friends Life UK Retirement Savings Map1 finds 18-24 year olds who have a pension are all actively saving into their pot

• Younger people are facing up to the reality of retirement and are more realistic about later life income

• Data of 18,000 people shows savings inertia increases as people get older

The younger generation is more likely to actively save into a pension than their older counterparts, according to data from the Friends Life UK Retirement Savings Map.

The study of over 18,000 people across the UK found that, of the 10% of 18-24-year-olds who have a pension, all are contributing to their fund. In comparison, one in seven (14%) of 35-44-year-olds who have a pension are not contributing anything at all.  This savings inertia rises to one in six (17%) of those aged 45-54 and then almost a quarter (23%) of those aged over 55 who have a pension but are not saving anything at all into it.

There is also a disparity between what different age groups think they need to live on in retirement and the income they expect to receive. The average 18-24 year old expects to have an income of £17,440 per year in retirement, which would leave them with a potential financial shortfall of £4,840.21 per year, once living and housing costs have been factored in.

But those aged 45-54 expect to have an income of £18,474 per year in retirement, which would leave them with a shortfall of £6,489 per year.

Andy Briggs, Group Chief Executive at Friends Life said:
"I am heartened by our research, which shows people taking steps early to secure their future by saving into a pension. Auto-enrolment will mean more people from a younger age are encouraged and supported to start saving, so I expect to see this trend in savings behaviour accelerate. However, our research suggests that with age comes saving inertia, which may be a result of other priorities taking over, such as saving for weddings and spending money on children. Younger people need to harness their savings potential to kick start their retirement plans. As an industry, we need to focus on helping consumers of all ages. We need to help those people worried about their level of pensions saving and help them find the support they need to identify the best way to save to suit their individual circumstances. Putting savings plans in place early will ensure more people can secure a retirement they aspire to."

-ENDS-

For more information, please contact:

Helene Barnes Friends Life 01306 635 281 or
0845 268 5281 		helene.barnes@friendslife.co.uk
Kate Cunningham Teamspirit 020 7864 4138 friendslife@teamspiritpr.com
Kate Mallett Teamspirit 0207360 7829 friendslife@teamspiritpr.com

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Notes to Editors

Friends Life provides pensions, investments and insurance for over five million customers. Our key business lines are corporate benefits, protection and retirement income.

Friends Life is the brand name of Friends Life Group Limited.

Our heritage dates back to 1810, with Friends Provident being founded in 1832 to help alleviate the hardship of Quaker families facing misfortune.

Other brands in the Friends Life group include:

  • Friends Provident International, which provides life assurance, pensions and investment products to Asia, Middle East, Europe, UK and other selected markets.
  • fpb AG, a wholly owned distribution partner in Germany.
  • Sesame Bankhall Group, which was formed in 2009, combining an IFA network, support service provider and mortgage club, to create a large distributor of professional support services to financial advisers.

Important

This news service is for information purposes only and does not provide any form of advice, recommendation or financial promotion. Any opinions expressed by third parties are those of the third party concerned and not of Friends Life Group Limited. Friends Life Group Limited does not accept liability for any errors or omissions or for loss incurred because of reliance on information or opinions given.

The content of the news items set out above are accurate only as of the date of issue and Friends Life Group Limited does not undertake any obligation to update them.

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Friends Life is a business name of certain companies in the Friends Life group including the following

Friends Life and Pensions Limited Company number 475201
Friends Life Limited Company number 4096141
Friends Life FPLMA Limited Company number 00004599

Each of the above companies is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

Friends Life Marketing Limited Company number 5059179
Friends Life Investment Solutions Limited Company number 6389025
Friends Life Services Limited Company number 3424940

Each of the above companies is authorised and regulated by the Financial Conduct Authority.

Friends Life Management Services Limited Company number 983330 is an appointed representative of Friends Life Services Limited, Friends Life and Pensions Limited and Friends Life Limited.

Friends Life The Blue Line Limited Company number 3146254 is an appointed representative of Friends Life Marketing Limited

Suntrust Limited Company number 1460956 is not authorised or regulated by either the Prudential Regulation Authority or the Financial Conduct Authority.

Each company is an incorporated company limited by shares and registered in England and Wales with a registered office at Pixham End, Dorking, Surrey RH4 1QA

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