The number of 40-somethings who are saving enough for their old age has shown a “worrying” decline over the past year, a report has found.
While the proportion of people aged in their 30s and 50s who are saving adequately for their retirement has increased, the share of people aged in their 40s who are doing so has edged downwards, from 57% in 2015 to 53% in 2016.
The report, compiled by Scottish Widows, defined people as saving adequately if they are putting aside at least 12% of their income towards their retirement including any employer contributions into a pension - or they expect their main retirement income to come from a “gold-plated” defined benefit (DB) pension, such as a final salary scheme. The report has been running since 2005.
It also found the proportion of people in their 40s who are not saving towards their retirement has increased from 16% in 2015 to 19% now.
Despite many having spent two decades on the career ladder, people aged in their 40s often find themselves juggling several big financial outgoings while also trying to shore up cash for their retirement.
The report said: “As first-time parents get older, and our own parents survive much longer than they would have done in the past, today’s 40- to 49-year-olds are being squeezed more acutely than ever before.”