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Young people 'need savings culture'

A think tank has warned that young people are not being brought up in a savings culture, which could put them at risk of an "unsustainable future".

The International Longevity Centre-UK has warned that more needs to be done to encourage youngsters to plan for their retirement in light of increased life expectancy and growing care costs.

Experts at the group have called for a 'savings rule of thumb' to be introduced in a similar fashion to the five-a-day healthy eating message, which would encourage youngsters to set aside more money.

It said that existing saving incentives, such as tax relief and on pension contributions should be promoted more widely.

The group also warned that the Government may need to go further and introduce an alternative plan in case young people opt out of auto-enrolment into pension schemes when the move is introduced in October 2012.

Dr Craig Berry, senior researcher at ILC-UK and author of the report, said: "Planning for retirement may be an alien concept for many young people, but delayed transitions to adulthood in terms of owning a home, establishing a career and starting a family mean that young people need to start saving for a pension now.

"Crucially, however, Government policy to encourage saving must be informed by generational perspective."

Copyright © Press Association 2011

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