Is your head stuck in the sand on savings?

New Year, new start – so it’s the perfect time to get to grips with your retirement planning.

Especially as so many of us just stick our heads in the sand when the subject is raised.

A survey suggests that nearly half of UK adults who haven’t yet retired are behaving like “ostriches” when it comes to preparing for old age.

They are either not saving for their retirement, or their funds are way short of what they will need.

While some people simply can’t afford to save, others just choose not to.

The research, carried out among more than 6000 people for Skipton Building Society, grouped people depending on their saving habits.

Only 16% of people were classed as “wise owls” – those on track to meet or exceed their savings target. People in this group tended to have a broad range of investments.

Another 6% were described as “squirrel savers”. Like wise owls, they were on track to meet or exceed their retirement needs, but had a less sophisticated mix of savings.

“Money moles”, people with a company pension or cash ISA but without a set target, accounted for 21%.

Meanwhile, around 18% of people surveyed were “savings snails”.

They tended to save more than “ostriches”, but were way off their target amount.

To get you started, Skipton and finance blogger Miss Thrifty have come up with these saving tips:

• Set targets. Break down the sizeable goal of building a retirement fund into smaller, monthly or annual savings targets.
• Start now. Small changes to spending habits could make your targets a reality. One way to start this is to review the outgoings listed on your bank statement, or keep a spending diary.
• Consider seeking independent financial advice. Nearly a quarter (24%) of “wise owls” have independent advisers.
• Learn from others. Get in touch with retired family members and find out about the sacrifices they’ve had to make.