Quote:
Originally Posted by GiRTh
By the time most posters on here retire state pensions will almost certainly have been scrapped
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Then most will die on retirement after their savings evaporate within a few short months :
http://www.telegraph.co.uk/finance/p...ert-warns.html
Quote:
Private pensions will not exist by 2050 as young people have no interest in saving money that they can not touch for decades, a leading pension expert has warned.
Michael Johnson, a research fellow at think tank the Centre for Policy Studies, said that private pensions will cease to exist within years because young people see having immediate access to savings as far more important than putting money aside for their retirement.
Recent research found that just 12 per cent of people in their 20s and early 30s are paying into a pension, despite the Treasury offering tax relief on retirement savings.
Mr Johnson said: “The word ‘pension’ does not resonate with Generation Y. Immediate access to savings is far more important to them than the 20 per cent bribe that is tax relief.”
Pension saving among young people is extremely low, particularly as many now have student tuition fees to pay off. A recent report also found that people aged between 25 and 34 also have “entirely unrealistic” pension assumptions.
According to a recent study by Blackrock, the fund manager, a third of young people expect to retire on £30,000 a year even though so few are saving for their retirement.
For this £30,000 figure to be reached, a 25-year-old would have to save £400 every month until they reach retirement age, assuming an annual return of 5 per cent. Meanwhile a 35-year-old would have to save £750 a month.
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Of course, £30,000 in 2050 won't even buy a bicycle .....
So the £400 pm will have to be increased (at least) in line with inflation every year .....