23 October 2012
Young Brits hungry to know more about being enrolled automatically into pensions

• Over half (54%) of young British employees (18-24 year olds) say they want to know more about the Government's auto-enrolment initiative
• If a 22 year old earning £26,200 started saving 8% of their salary today into a pension they could achieve a fund of £279,000 in today's terms by age 67¹

According to recent research from Standard Life, over half (54%) of young British employees are keen to learn more about the Government’s new auto-enrolment initiative. The research reveals that ‘Generation Y’ is far more interested in learning about their pension options than those aged 35 and above - a third (31%) of employees aged 35 and over say they are interested in finding out more.

The research also demonstrates that while auto-enrolment is definitely a step in the right direction, more needs to be done to encourage people of all ages to think more about the importance of future planning and the opportunity provided by workplace pensions. Almost a quarter of British employees aged 35-44 (23%) stated that they were ‘not at all interested’ in finding out more about auto-enrolment, compared to just over one in ten (13%) of 18-24 year olds.

Previous research by Standard Life revealed that the age 30 is a pivotal point when it comes to long-term financial planning. Standard Life's ‘Keep on Nudging’ report demonstrated that many people in their mid-30s believed they had already “missed the boat”, while those under 30 felt they ‘had all the time in the world’.²

Ann Flynn, Head of Workplace Marketing at Standard Life, said: “It’s encouraging that the younger generation in Britain wants to know more about auto-enrolment. The whole driver behind the initiative is to make it easier for people to save for the long-term and that seems to be landing well with Generation Y.

“Auto-enrolment is a great opportunity for employees who are not currently in a pension scheme to start saving for a secure future. And one of the main benefits is your employer has to contribute to your pension and any personal contributions you make will usually benefit from a top up from the taxman too. This can make a substantial difference to your pension savings.

“Unfortunately the harsh reality is that the State Pension is unlikely to be enough to support us in retirement so we have to start taking responsibility, and the sooner we start the better.”

A video explaining what automatic enrolment into workplace pension schemes means for people can be found at www.standardlife.co.uk.

Ends

1. Figures assume an employee contribution of 5% (4% from their salary and 1% tax relief) with their employer paying a 3% contribution, growth rate of 6.5%, inflation each year of 2.5%, earnings increasing at 4% p.a. and an Annual Management Charge of 0.5%
2. Standard Life ‘Keep on Nudging’ report (Oct 2011)
   
   

For further information, please contact:

Steve Hartley
Media Relations Manager
Direct: 0131 245 1365
Mobile: 07702934651
Email: Steven_hartley@standardlife.com

Nicki Lundy
Senior Media Affairs Manager
Direct: 0131 245 2737
Mobile: 07515298302
Email: Nicki_lundy@standardlife.com

Notes to Editors

1. Research -
   
   All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,125 adults, of which 1098 confirmed they were workers. Fieldwork was undertaken between 29th - 31st August 2012.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)
   .
2. Standard Life -
   

• Standard Life has created a dedicated website for employers, trustees and intermediaries that includes information and a toolkit to help schemes plan for auto-enrolment workbenefitszone.com
• Established in 1825, Standard Life is a leading long term savings and investment company, with around six million customers worldwide. By understanding and offering innovative products to meet its customers’ needs, Standard Life helps people with their financial planning, so they can feel more confident about the future.
• Standard Life offers a range of individual and group pensions, SIPPs, ISAs, annuities, life assurance, offshore bonds, investment management, wealth management, tax planning and estate management services.
• Standard Life has created an online education hub to help consumers learn more about savings, investments and planning for retirement. It also has information about how to be tax efficient and a range of tools to help people plan their personal finances www.yourfuturemoney.co.uk
• Standard Life is headquartered in Edinburgh and employs around 9,000 people across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. At the end of June 2012 the Group had total assets under administration of £206bn
• Standard Life plc is listed on the London Stock Exchange and has approximately 1.5 million individual shareholders in over 50 countries around the world.
• Standard Life plc is also listed in the Dow Jones Sustainability Indexes (DJSI World) in recognition of its performance as one of the world’s leading sustainability-driven listed companies.
• Standard Life is proud to support basketball in the UK. It has partnered with British Basketball to sponsor the Standard Life GB Men's, Women's, Under 20 Men's and Under 20 Women's teams and their home games. It has also partnered with British Wheelchair Basketball to sponsor the Standard Life GB Men’s and Women’s Wheelchair Basketball Teams and their home games.
• You can follow Standard Life press office (@sl_press) on www.twitter.com/sl_press

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