Simplifying the rules surrounding pension schemes may help young people to prepare for retirement, it has been argued.
Many younger workers do not think about how they are going to live in 50 years time, according to Pinsent Masons.
However, by making pension schemes more understandable, more workers will make provisions, the law firm claims.
Robin Ellison, partner at Pinsent Masons, suggested: “The government could issue some simple mantras, such as it needs £1,000 in the building society to give you an income of £1 a week.”
Seeing the experience of those without company pensions will also persuade younger people to start saving, he added.
Research by Prudential has found that 43 per cent of pensioners admit living a “cautious” lifestyle to save their retirement funds.
The majority had taken a tax-free lump sum from their pension scheme in retirement; however ten per cent of those who did say they now regret the decision.
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Posted by News Team
