Pensions through the ages

The research on pensions carried out by Royal London, which highlights that the medium sum saved for retirement by those aged between 30 and 40 was £14,000, makes for alarming reading. The research flags the need for that to be £660,000 – so there is – clearly – a huge shortfall.

Where next for this group of the population? What can they do to avoid poverty in retirement?

Being aware (and interested) in their financial situation is a good place to start. They need to recognise the need to save – to avoid poverty. And, I’d argue that the responsibility lies with their employer to help encourage a change in mentality. Surely headlines like this flag the need for financial education in the workplace. A financially educated employee will prioritise the need to save for their future – to avoid the possibility of a retirement in poverty.

By Darren Laverty, Partner at Secondsight