Young workers born in the 1980s, previously nicknamed the 'ostrich generation' for their lack of interest in saving, are increasingly ‘taking their heads out of the sand’ when it comes to pension saving and plan to put aside more than their older colleagues despite the pressures of debt and property deposits looming over them according to the National Association of Pension Funds (NAPF).

According to latest research of over 2,000 people, the NAPF found that 53 per cent of workers aged 25 to 34 plan to increase their retirement savings in 2013 compared to just 26 per cent of those aged 45 to 54.

Results also showed that almost half of the 1980s generation (47 per cent) stated that they wished they had declared greater interest in pension saving at an earlier age, the highest of any age group and above the average of 42 per cent.

The NAPF stated that the increase in interest was likely to be a direct result of recent changes to the state pension, and the implementation of auto-enrolment.

NAPF chief executive Joanne Segars said: “The results are counterintuitive but encouraging. A few years ago, these workers were nicknamed the ostrich generation, because they knew they needed to plan their retirement, but were doing nothing about it.

“Their retirement might be decades away, but it looks like many younger people are taking their heads out of the sand when it comes to pensions. We still have a long way to go to raise interest among workers in their early 20s, but the key thing is that the earlier you start saving, the better. The UK needs to do much more to save for retirement.”

The survey did however highlight some issues that need to be addressed. Forty-four per cent of the 25 to 34 age group do not know whether their pension is a good one or not, and 45 per cent stated that they are not content with their savings approach.

Share Story: