The age of 36 marks a turning point in retirement planning when more people typically start paying contributions above the minimum auto-enrolment (AE) rate into their pensions, according to research by Standard Life.

Its forthcoming Retirement Voice report found that, before the age of 36, just 23 per cent of people have a contribution rate of more than 8 per cent of earnings.

However, by the age of 36, its research found that this figure jumps by more than 50 per cent to 35 per cent.

The report highlighted several reasons for this, including that people tend to have a more settled life in their mid-30s, with the average age people saying they felt more financially comfortable being 37.

Furthermore, it is around this time when people start to become more confident in their ability to make financial decisions, with 63 per cent of 36 year olds confident in their ability compared to 56 per cent of younger groups.

Standard Life noted that topping up pension contributions by 3 percentage points from the age of 36 could lead to £120,000 more at retirement.

Its report found that people today are typically starting retirement planning 13 years earlier than current retirees did, who started planning aged 49 on average, but pension changes mean that have a lot to do.

The majority of today’s retirees expressed regrets about how they approached retirement planning, with 55 wishing they had started planning earlier, 54 per cent regretting not saving more for retirement, and 53 per cent wishing they had started saving for retirement earlier.

“Many people find the age of responsibility really begins when they reach their mid-thirties, as they often start to buy property or consider starting a family,” commented Standard Life managing director for workplace, Gail Izat.

“With responsibility comes more of a need for financial security now and in the future, and so this tends to be the age people tend to start thinking about their long-term as well as day-to-day financial goals.

“The recent pressures of the cost-of-living crisis, high housing costs and other challenges like tuition fee repayments mean people starting to save now face considerable trade-offs when it comes to deciding what to prioritise financially, and so it’s more important than ever that employers and pension providers help people to engage with their long-term savings.

“Pension saving is vital, but it should be viewed in the context of people’s broader financial priorities – for employers and pension providers, taking a holistic approach to people’s financial wellbeing is vital to securing the best possible long-term outcomes.”

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