Debt problems on horizon as majority fails to save for retirement
Debt problems on horizon as majority fails to save for retirement
- Tuesday, 6 April 2010Debt solutions could be needed by many of today's younger people in years to come.
New research from the Department for Work and Pensions (DWP) has revealed that many younger people are failing to make adequate plans for their retirement despite recognising the importance of doing so.
The vast majority (80 per cent) of people aged between 18 and 24 have no pension plan.
While this is perhaps unsurprising for young adults making their first steps into the workplace, overall less than half of those surveyed were putting money aside for their retirement.
This statistic is all the more striking when it is revealed that 83 per cent of all those surveyed felt that a pension plan represented the best way of securing your financial future.
Dr Rebecca Driver, chief economist for the Association of British Insurers, said: "Tackling the level of under-saving is a colossal challenge that must be addressed if we are to avoid widespread pensioner poverty.
"The government needs to take the lead and encourage healthy attitudes to money in the same way as they encourage healthy lifestyles."
Should the government fail to do so, it is possible that a generation of penurious pensioners could be left in dire need of help to
get out of debt.

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