Graduate job delays can cost £35,000 in pension savings, analysis finds
The analysis from Finder found that a one-year delay can mean losing £18,000 from a pension pot, while a two-year delay can mean losing £35,000.
Finder has reported that graduates facing a one or two-year delay in starting full-time work after university could see a significant impact on their finances.
The analysis found that a one-year delay can mean losing £18,000 from a pension pot, while a two-year delay can mean losing £35,000.
Graduates who start work straight away are projected to retire with a pension pot of around £363,000, but a two-year delay reduces this to £328,000.
The report also showed a shift in the timeline for homeownership.
Analysis found that a typical graduate with an immediate start might save for a house deposit before 30, but with a two-year delay, that milestone moves to age 33.
The modelling found that saving for a house deposit takes 10 years and seven months after a delay, compared to seven years and 11 months for those who start work straight away.
Kate Steere, personal finance expert at Finder, said: “There are countless stories of graduates struggling to find work – and this can lead to a real atmosphere of fear and frustration when they think about their future.
“This generation is clued in enough to know that saving and investing early can make a significant difference to their long-term financial health, but they’re still stuck in the starting blocks.
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