Graduates heading for pension debt

According to HSBC, delaying starting a retirement fund until the age of 30 can mean that a pension is half of what one could get if saving starts at 21.

Ian Martin, head of pensions and retirement income at HSBC, said: “There has been a great deal of talk about pensions recently and it appears that older workers are starting to hear the message about the importance of planning for their retirement.

“With the basic state pension currently only paying £84.25 per week – and likely to decrease over the years – no-one can afford to put their pension on the back-burner.”

While many graduates may be worrying about their student loan repayments, a proper debt management plan should account for the long-term too.

This is particularly relevant as current pensioners already admit to be struggling with debt repayments and many expect to die owing money.