Pension crisis in store for young UK?
Fewer than half of people under the age of 30 are in a pension scheme, a lower figure than in the 1950s and 1960s, according to the TUC.
Mis-selling scandals and employers "retreating" from paying into workers' pensions are blamed. Other factors, such as student loans and the rising house prices have also had an effect on the number of people taking up pensions as outgoings increase.
Government figures show that less than half of those under 30 are currently saving for a pension, compared to 73% of those born in the 1960s.
People are living longer, and people need a bigger pension’s pot to provide a decent pension. Men need around £180,000 savings at 60 to get a £10,000 a year pension, while women need £210,000. These figures have gone up by 40% since 1994.
"Young people have started a slow pension’s time bomb. Unless they take out pensions, a generation faces poverty in old age, dependent on the generosity of whatever government is in power," Brendan Barber, TUC general secretary said.
Experts say you have to save 15% of your pay from your 20s to guarantee a decent pension. But with student debt, sky-high property prices and other costs, few can manage this. But if you don’t start until you are 40 then it’s 24% - time to tighten the purse strings and make sure that, as freelance workers, we plan for our futures.
14th June 2004