I read somewhere in the past few months that said that sometimes when people go to college, because of debt and other issues, the college graduate would not have as much money saved at retirement as the person who graduated with just a high school degree, even though the person with the high school degree earns less.

Of course, this is counting on that the person who did not go to college not only has a college fund, but invests that in a mutual fund that tracks the market and also puts money into their retirement fund on a monthly basis.

While this is a scenario that could happen, it often doesn’t. A report by the Office for National Statistics in Great Britain reported that people who earn less do not contribute to their pension funds as often as those who earn more. It said that 21% of men and 32% of women who earn less than 300 pounds a week were contributing to their pensions.

This is in stark contrast to the 76% of men and 82% of women who earn over 600 pounds per week give to their pensions and have an employer sponsored pension program.

This could also have something to do with the fact that contributions to employer sponsored pension programs are down. According to reports, in Great Britain, in 1979, 65% of employees were contributing to their employer’s pension program. However, the number dropped to 57% in 1995 and then to 54% in 2004. In the private sector, 40% were contributing to their fund while 25% were contributing in 2005.

A problem has come up regarding the pension programs because people simply aren’t contributing to their pensions, and they don’t continue to participate in a program. Contributions to 33% of pensions stop after four years. If this trend follows that means that within 10 years, as few as 40% of pensions will still be getting contributions.

A serious issue in the United Kingdom, as well as all across most of the world, is the aging population. In the UK there are four working people to every retired person. In the future, the ratio will turn. In the United States, many are worried about what happens as our population grows older. Obviously this issue is just as large in other countries as well.

This is why everyone should start saving for retirement. You can never be too young to contribute to a pension fund or a 401 k or any other kind of retirement fund.

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