Saving for retirement is “crucial”, lender states

Making savings to ensure a good standard of living during retirement is becoming “crucial”, Alliance and Leicester has stated.

The lender noted that the “increasing demand on the pension pot” means that workers should start saving early to ensure financial security later in life.

Savings manager for Alliance and Leicester Hetal Parmar noted that the current economic downturn is having an affect on people’s saving habits as they look to build up a “financial cushion” for the future.

“One in three people are making or have made sacrifices to help ensure that they enjoy a comfortable retirement,” he remarked.

Those worried about getting into debt or becoming bankrupt when they stop working may wish to make further contributions to their savings so they do not struggle in retirement.

The company’s Savings Outlook Report recently found that 26 per cent of people are more likely to save their money now than they were two years ago, while 35 per cent have made sacrifices to keep money for later in life.

By Tom Musk