Help today’s youth to protect tomorrow’s pensions
Retirement planning must be given the same priority as careers advice in schools to combat the UK’s growing pensions crisis, Nigel Green has claimed.
The chief executive of the deVere Group was commenting on figures that claimed more than four out of 10 of those close to retirement age did not know when they would be able financially to retire.
He said: “It’s alarming, but sadly not surprising, that such a large proportion of Britons who are nearing retirement age do not know when they will be able to afford to retire. As a country we’re ill-informed about achieving financial freedom in retirement.
“In order to ensure people are, in the future, more likely to be able to retire when they choose to, and not have to work in to their 70s, for example, simply because they can’t afford to give up work, it’s of paramount importance we teach our young people how to plan their finances for when they’re older.”
Mr Green said that the earlier people start to make informed decisions, the easier it will be for them to enjoy the lifestyle that they deserve when they retire.
He added: “With annuity rates plummeting to historic lows, age-related benefits being scrapped, soaring living costs and taxes, and people living longer – meaning the money has to go further – it’s clear that the world has changed irrevocably in the last few years; things are not the same today as they were a generation ago.
“Should we fail to teach our young people retirement planning, an increasing number could find themselves unable to enjoy the retirement that previous generations have taken for granted.”
“We teach youngsters in secondary schools about finding a suitable career, which is right and proper, but it is madness that we stop at equipping them with the life skills of how they are more likely to be financially independent once they are ready to leave the world of work.”