It would seem that at last younger savers are starting to take pension savings seriously. It may also mean that recent pension reforms are starting to hit home.
And so they should, with excellent tax breaks and more generous limits on contributions, the fruit is ripe for the picking.
Research by Fidelity FundsNetwork shows nearly a quarter of a million people in the 25-34 age range are saving serious amounts on a monthly basis.
Tax breaks mean pensions are a highly efficient form of saving albeit the least liquid. SIPPs are also becoming popular with the younger investor.
Head of Fidelity FundsNetwork, David Dalton-Brown commented, “Time is one of the saver’s greatest allies: the earlier you start, the less you have to set aside to reach your goal and the long-term growth potential of equities should not be under-estimated.”
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