Provided by Pensionlite for your consideration:
Students often don’t get great press, especially when it comes to money. They sometimes have a reputation for blowing all of their loans on nights out, without giving much thought to their future. This is certainly not the case with everyone though, and in a recent UK survey, it seems that some common ideas about students are simply not true at all. Mainly, it has come to light that they understand the value of putting into their pension scheme, and that they understand the need to save, pay off debts and cut unnecessary spending.
The survey was carried out by Bluefin Corporate Consulting, and looked at students from all across the country.
While the UK is phasing in automatic pensions in the workplace, students do seem to be willing to ensure that their pensions are funded before luxuries are paid for, which comes as one of the biggest surprises. The main question asked was what students would cut if they found that they were struggling with student debts. The first thing to go would be holidays. 49% of those asked would stop saving for them if it meant struggling with debt. Nearly a quarter would stop saving for a car. Surprisingly, just 14% of students would stop paying into their company pension scheme, even when struggling with student debt.
Interestingly however, when asked about automatic enrolment, 20% of the students asked said that they would in fact opt out of the scheme. This is slightly at odds with what the survey already discovered, but it does mean that a huge number of students still understand the importance of putting into their pension scheme. With a tough economic climate, savings can be the first thing to get the axe, and it seems that students understand that this probably isn’t a good idea.
The news is actually pretty important for businesses, which will now have to expect that a great majority of graduates that they employ will expect to be receiving some sort of pension scheme. A lot of employers match contributions, so it could be a big extra cost for them to consider.
Students that read this and are sceptical about beginning a pension so early in their career should consider that the state pension received in the UK is somewhat of a luxury, and cannot be infinitely guaranteed. It is essential that upon retirement, wherever in the world you may live, you have a plan for your income. There are many retired people around the world who struggle with low income, and the only way to avoid this it to make sure that you’re suitably prepared in later life.
There are a lot of people who are now realizing that the scheme they were originally in is not giving good value for money. For pension transfer advice visit www.pensionlite.co.uk, and if you’re looking to find out how your savings translate to income in later life, there are a number of resources available on the internet.