Why those born in the 60s and 70s need to save for retirement
Research from the Institute of Fiscal Studies (IFS) has shown that people born in the '60s and '70s may not be better off in retirement than those older than them, unless they inherit.
When compared with those who are ten years older, it was found:
- Their take-home income is no higher;
- Their savings are not higher
- They are less likely to own a home
- It is likely that they have lower private pension wealth
- Their state pension may replace a smaller proportion of previous earnings.
If you want to be assured of a comfortable standard of living in retirement, it may be best to plan for it, rather than relying on a future inheritance that you may or may not receive. All employers, starting with the largest, will eventually have to automatically enrol their eligible workers into a pension scheme, but if this does not apply to you yet or if you are self-employed, it may be a good idea to start your own pension plan.
Read more about automatic enrolment here.
You can also talk to us about any pension-related matter. Please contact us using one of the following methods.