Tommy Magik

Brits are well ahead of some of their European counterparts when it comes to planning for their retirement, AXA claims.

According to the firm, the average Briton starts taking financial precautions for their pension at the age of 28, six years younger than the French or Spanish and ten years earlier than the average Hungarian.

Although he said the figures were “encouraging”, Steve Folkard, head of pensions and savings policy at AXA, warned that many are still leaving pension planning far too late.

He said: “Young people today think retirement is far off and that pensions are something they do not need to worry about, yet figures do show that the earlier you begin saving the greater then benefits when people hit retirement.”

In 2006, there were 11.4 million people of pensionable age, according to Age Concern.

However, the charity predicts this figure will rise to 12.2 million by 2011.

The future is not looking good as people find it increasingly difficult to save, according to Baronworth Investment Services.

The advisory firm claim that although the UK is not currently in crisis, if the present savings culture continues, there are “major problems” ahead.

“People are finding it very tough to put money aside each month for long-term or even short-term savings,” commented Colin Jackson, director of the company.

“Things ain’t looking good,” he added.

Mr Jackson said that although the base rate has been cut, there is no guarantee that interest rates will follow. He explained that with increasing living costs and mortgage payments, there is less leftover to save.

Credit Action reports that total UK personal debt reached £1,391 billion at the end of October, a 9.7 per cent increase over the previous year.

Total consumer lending stood at £222 billion during October, having increased by 5.8 per cent over 12 months prior.