Young people are eschewing cash gifts this Christmas and want pension bungs in their stockings instead.
Nearly half (48%) of 18 to 25-year-olds say they would rather have a £40 contribution to their pension than £40 cash, according to a self-employed pensions firm Penfold.
This compares with 40% of Brits all ages who say they would “love” to find a pension contribution in their stocking this Christmas, the survey of 2,000 people found.
Just 4% of people said they would be disappointed by a pension contribution waiting for them under the tree on 25 December.
More than half (51%) of self-employed people said they would appreciate a pension contribution from Father Christmas.
Chris Eastwood, co-founder of Penfold, says: “A pension contribution may seem an unusual choice for a gift but the fact is that a simple, affordable contribution of as little as £10 a month could give someone a fantastic starting point for a pension and set them up for life.
“One of the biggest reasons people want a pension is so they can relax and enjoy many more Christmases in retirement, rather than having to go back to work as soon as the turkey has been carved.”
When asked if they would prefer a gift now or one that multiplies in value over 20 years, a surprising 57% said they would take the latter.
Eastwood adds: “What many people forget is that for every £1 put into a pension it automatically gets 25% tax relief so it immediately turns into £1.25. £10 becomes £12,50, £100 becomes £125, £1,000 becomes £1,250 and so on. There’s no other gift that increases in value quite like it.”
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