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Pensions: raising awareness

Editorial Team, 15 Sep 2015


Did you know that today is Pension Awareness Day (PAD)? PAD is an award winning annual campaign that takes place on 15 September and aims to raise awareness of the importance of saving for the future and waving the warning flag that people simply aren’t saving enough for their retirement.

This will come as no great surprise to those working in the industry – and encouraging people to save sufficiently for their future features in most of our newsletters!

Earlier in the year, the pension freedom reforms raised public awareness for those who are thinking about retiring in the not-too-distant future. However, this doesn’t really help many younger people who are not yet really thinking about their retirement. Research undertaken by pension provider Aegon noted that just 7% of the UK is on track to generate the retirement income they want – which is quite a shocking figure! Young people need to be saving more. But of course, this is easier said than done: they have other financial priorities which arguably affect their lifestyles right now rather than in the future, such as paying off debt, paying for a wedding, starting a family, and buying a home. All these expenses on top of an insecure job market and high living costs (particularly in the south east and London) can make saving anything at the end of the month pretty tricky.

Thankfully, the introduction of auto-enrolment in 2012 (running until 2017) will go some way to alleviating the looming pensions crisis. Opting out of auto-enrolment is still possible, but for those starting out, it seems like a bad move).

This all sounds rather negative, but in fact, younger people have their whole futures ahead of them, so with a bit of awareness and forward planning, they have the chance to build a reasonable size pot of money for retirement. Even saving a small amount by giving up those takeaway morning coffees, for example, can make a difference. Of course, pensions awareness isn’t relevant for just for one day – it’s for life. The message is clear: build awareness and start saving early!


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