4 December 2011

A Generation Retiring into Poverty?

I read some interesting views on the future of pensions from the Cass Business School recently which I generally agree with.

After the current generation of would-be retirees - those in their 50s and 60s - there will be a generation of people who will have an impoverished retirement. That probably means those currently in their 30s, and 40s who don't see the need (or aren't capable) of saving sufficiently for retirement. The generation behind that will have learnt some lessons and will have saved enough to see them through, partly through the Government's auto-enrolment plans - but don't think that will be the whole story because it won't. And retirement age will have increased to match longer lives by then.

The reason it will take that long is that attitudes have to change. Politicians will not be much help in this since they are fundamentally ill-equipped to deal with such a long term structural problem.

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