A new research commissioned by insurance major Aviva found that more than half of young savers prefer savings schemes that do not lock up their money until retirement.
The findings seem to suggest that individuals are put off by the recent government announcement that early access to pension pots is not permissible and hence not to keen to put their money in traditional pensions.
The Aviva survey found that 42 percent of the under 25 years population were more willing to put their money at workplace Isas while 54 percent said they were more enthusiastic about savings product that allows them to withdraw funds.
The research also found that young savers were optimistic about the yet-to-be-launched auto-enrolment scheme with 47 percent in the 25-30 years age group expressing happiness of being enrolled in a pension scheme automatically. It found 35 percent of 18-24 years old were also ‘pleased’ with the development while 21 percent in the same age group was concerned about their take home salary.
This was in stark contrast to the older generation with only 14 percent in the 46-55 years bracket supporting the auto-enrolment scheme.
“While most people are open to the benefits of auto-enrolment and saving for their retirement there is still some work to be done”, said Paul Goodwin, head of pensions marketing at Aviva.
“Those just starting out on their career tend to have lower incomes and have expressed concerns about the extra pressure it would place on their monthly budget, whereas those coming to the end of their career are more likely to be concerned that the type of scheme might not be suitable for them”, he explained.