Younger savers are increasingly looking to financial self-help to fund their future retirement, according to a survey by a pensions and investment firm.

Axa’s fifth global retirement scope survey, being published next week, will show that 35 per cent of people aged between 25 and 34 in Britain now expect most of their pension provision to come from individually accrued investments and savings.

In the survey, 92 per cent of people in that age group associate ‘financial burden’ as the biggest characteristic of retirement, which, Axa says, may account for the six in ten that save regularly.

Around half of older Britons in the babyboomer generation expect the state to provide the bulk of their retirement income, where just 21 per cent of the 25 to 34 anticipate being able to rely on state provided pensions.

Axa says younger consumers appear to be coming to terms with the prospect of less government support and increasing longevity to take more personal responsibility for their financial well-being.

Pensions have been a focus of political, media and public policy attention recently, with warnings about the challenges presented by an ageing society, reform of state pensions and the proposed introduction of auto-enrolment for employees in workplace retirement savings schemes.

The firm is calling on the industry, including independent financial advisers, to work on professionalising the sector to build-up consumer trust, bringing to market innovative, flexible products, and investing in technology, systems and marketing that appeals to younger audiences.

Mike Morrison, head of pensions development at Axa Wealth said: “The onus is increasingly on individuals to plan better and save earlier if they want a good standard of living in retirement. This means more education is needed; our industry has a huge role to play, for example in collaborating much more closely with consumer groups and universities, to make sure that younger people are adequately prepared for the reality of DIY retirement.”

The survey showed that just under half of 25 to 34-year-olds appeared to favour a greater reliance on personal savings and investments over working for longer. Just under half said they would consider increasing their own investments and savings to ensure a sufficient income in retirement.

© Fair Investment Company Ltd