Young people 'need to get saving'

While retirement may be the last thing on young people’s minds, putting cash away into savings accounts and pensions early will save a whole deal of strife in later years, the Australian reports.

The paper estimates that anyone aged between 20 and 40 should be looking to put between 20 per cent and 25 per cent of their earnings into a savings account, term deposit or super to ensure a comfortable retirement fund.

And for those that can do so in the current climate, the rewards can be great, with the paper pointing out that bank term deposits are offering some particularly attractive interest rates as they look to lure Australians back into saving.

The paper points out that over the last 20 years, Australia has established a reputation as the worst nation in the world when it comes to saving, although recent figures are indicating that this trend may be about to turn on its head.

Recent official figures show that prudent Aussies, stunned by the financial crisis, ploughed some $38 billion into savings account in the six months up to the end of March.

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