Pensions outlook 'bleak' for younger generation

29 March 2007
The generation of British employees preparing to retire within the next decade know how lucky they are to feel secure about their pensions, a study from Scottish Widows shows.

Almost two-thirds of over-50s said they recognised that their children would have difficulties in building up any savings at all while 58 per cent added that their offspring would have trouble feeding the pensions pot.

As four in ten of the older generation revealed they had given or lent their adult children money from their own savings, Scottish Widows' savings expert Anne Young warned that the younger generation face a "bleak outlook for their retirement and ability to save".

Meanwhile, financial expert Andrew James, retirement planning manager for Edward Jones, has warned that a series of "sudden changes" in pensions legislation has left many people uncertain how best to begin saving.

Too many schemes have been introduced only to be later withdrawn, he said.

"People are still very confused … and are therefore making little or no provision for their retirement," Mr James warned.

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