Parents who do not save for the future when starting a family could be leaving themselves, and their children, at risk of being financially unprepared for later life, HSBC Insurance has warned.

The fifth annual Future of Retirement study, It’s Time to Prepare, shows that only 13 per cent of people in their thirties, traditionally the ‘nest building’ age group, view starting a family as a key motive to save for the future. Furthermore, only eight per cent of respondents with children under 10 years old were motivated to save for the long term by starting a family.

Christine Foyster, head of premium wealth proposition at HSBC, says, ‘It is surprising that such a life-changing event as starting a family motivates such a relatively small percentage of parents to focus their thoughts on financial planning for the longer term.

‘Many parents are preoccupied with short-term savings and tend to give little thought to the long term. However, starting a new family can be a great catalyst to consider saving for the future.’

She adds, ‘Parents should seize the opportunity to save for the long term that starting a family presents – whether to ensure that they do not have to rely on their children to provide them with a comfortable later life, or to ensure that their children themselves can look forward to a happy retirement.

‘While many people associate pensions with adult life, there are also pension schemes available for children. Opening a pension for a child is a tax-effective proposition which enables families to save for the future and provides peace of mind for their children’s retirement.’