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The pension’s minister has called for young adults to start thinking of savings for a pension in their old age

Date: (8 June 2012)    |    

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According to an official figure many young adults were not saving enough for their retirement the special report has suggested that the earlier they started saving it would be better for them.
By not saving for a pension when they were young they condemning themselves to poverty in their old age. The figures show that the number of women aged 22 to 29 in the UK who were signing up for workplace pension had fallen for four years in a row showing a sharp decline in any age group.
Steve Webb the pensions minister told the BBC that people were waiting it out long after starting work before they actually considered any plans for retirement.
Now the experts have warned that any new savings scheme for the employees benefit would only give a false sense of security to the workers as it would not be sufficient.
The Office for National Statistics has shown that at present more than half of the UK’s single pensioners had a pension income of less than £10,000.
With an ageing population by 2034 UK would see 23% of its population would be aged 65 and over an eight percent rise since 1984.
The younger generation of 20-somethings, pensions are no more on their priority list as they deal with more pressing financial concerns.
Earlier the pension scheme system assumed that women’s priority was to get married and that she did not need pension but with so many choosing to remain single things are not the same any more.
Kate Croxton, 27, a charity worker from Sheffield says that she is struggling to pay off her debt and other requirements like rent and living she could not think of saving for her pension at this point of her life, neither it was relevant nor it was urgent she added.
It has often been said that the only people aged in their 20s who thought about pensions were those who sold them.
But Pensions Minister Steve Webb says he was concerned that complications, as well as poor awareness of pension system, has turned many young people away from thinking about how they will fund old age.

Most young people starting in a job do not think about pensions for decades and they have a misconception that pensions are for grannies, he says.
He added 20-somethings were not expected to become pension geeks, but let them see the simple side of it and bring awareness to them by seeking their opinion on the sort of standard of living they want when they are old.
He also called on women especially to give it more thought. He said that women should have their own pension pot.

 

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