MAD UK generation not paying enough attention to saving for old age, research shows

Written by Ray Clancy

Wednesday, 30 June 2010 08:59

They are aged 45 to 54 and have been dubbed the ‘MAD’ generation, Middle Aged and Disengaged, because they don’t know the value of their pensions.

Research from Standard Life shows that 45 to 54 is the age at which most individuals disengage with their pension fund when they should be planning for their future.

It found that some 41% of 45 of 54 year olds admit they don’t know how much money is in their pension fund. Overall people begin to lose interest in their pension fund at the age of 25 and then don’t pick up on it properly again until the age of 55.

Of those aged 25 to 34 some 29% don’t know the value of their pension. This rises to 36% aged 35 to 44 and to 41% at age 45 to 54. It falls to 22% at the age of 55 and over.

Yet even though we know less about the value of our pension fund as we get older, most people say they care more about it. This makes clear that people need to translate their emotional attachment into taking action with their fund, said Standard Life.

At the age of 25 to 34 some 35% care about their pension. This rises to 39% aged 35 to 44, 48% at the age of 45 to 54 and 64% for those aged 55 and over.

Standard Life’s Mark Polson said people become more engaged with their pension as they approach retirement age but it is worrying to see that those aged between 45 and 54 are the least engaged with their pension. ‘Even at this point in life, with around 15 years to retirement, huge differences can be made to your future income,’ he said.

‘A pension is the most tax efficient way to safeguard your financial future. By engaging with your finances at a younger age, your money can work much harder for your future. It’s time for the UK to reality check its attitudes to saving,’ he added.