UK residents are spending money on switching cars, which could be better used on pension savings, according to research.
Britons could create a more comfortable income for themselves upon reaching retirement by switching car less often, the study by Standard Life shows.
The company cites a family purchasing a new car every three years, which could build up a pension fund of £28,879 over the course of their lifetime, by keeping their vehicle for an extra year.
Standard Life also states that the extra costs such as maintenance, which may be incurred by keeping a car for longer, have been factored into their equation.
John Lawson, head of pensions policy at Standard Life, commented: "Around 2.5 million new cars are registered in the UK every year and just under half of which are bought privately.
"We are not suggesting that people shouldn't buy new cars but changing your car a little less regularly can generate big savings. These savings, over a lifetime of motoring, could be sufficient to help fund a comfortable retirement."
Recent research from JPMorgan INVEST indicated that many young adults are using income to solve short-term financial issues, rather than saving for a pension.
Britons choose cars over pensions, study shows
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Britons choose cars over pensions, study shows
Tue, 08 Aug 2006
Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.
1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
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