NEWS | Pensions
not forever young Because you’re
Andrew Edwards comes up with some good reasons why young people will benefit from saving into a pension
L
ast year, the Money Advice Service found that 21 million adults – four in 10 – have less than £500
in savings. Another study, this time by Investec Wealth & Management, found nine out of 10 millennials (those aged between 18 and 35) blame their failure to save on the high costs of living. It’s probably no wonder then that saving into a pension tends not to be a main priority for young people.
20 DIRECTOR OF FINANCE This is a worrying trend. For decades,
past generations have enjoyed being enrolled into attractive, final salary, ‘defined benefit’ schemes. Furthermore, they didn’t really have to think about it or do anything, it just happened. Then one day as if by magic, they reaped the benefits. The financial crisis of 2008, which saw interest rates slashed, was the beginning of the end for this particular golden goose as far as final
salary pension schemes are concerned. In 2016, and especially since Brexit, things have got steadily worse and companies have been squealing about the soaring cost of their old salary- linked pension promises after another interest rate cut triggered tumbling bond yields. The result of all this is that young people are going to have to think differently about making adequate provision for retirement.
dofonline.co.uk
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