Brits should be encouraged to save for pensions by being entered into a lottery

Brits need to be encouraged to put money into a savings account or pension scheme to prepare for retirement.

Currently, Brits are not very good at paying into a pension scheme so automatic entry into a £1 million lottery for anyone who starts saving for retirement has been proposed.

Dr Ros Altmann, director-general of Saga, made this suggestion as marketing campaigns are not persuading Brits to save for retirement.

In the CII Retirement Savings report, she wrote that a large number of those in the baby boomer generation will find they have not made adequate provisions for retirement when they reach 65.

She stated that the average pension fund is just £30,000 and this will not cover any time that needs to be spent in a care home.

This is bad as one in three women and one in five men will have to go into a care home for an average of two years, which will cost around £50,000.

"It is absolutely vital that we reinvigorate long-term savings," Dr Altmann wrote.

"People have lost faith in pensions and many have put no money aside for retirement, never mind for long-term care. We cannot go on like this."

One of the ways in which consumers may be encouraged to put money into a savings account long-term is through a lottery, she suggested.

It was proposed that anyone contributing towards their pensions should be entered into a £1 million lottery each month, which will help fund their old age if they win.

Dr Altmann also stated that Brits need to be prepared to work for longer as the state pension is not enough to fund retirement.

These proposals could persuade people to save money. A recent survey by National Savings and Investments revealed that 27 per cent of Brits will be putting less money into savings accounts in coming months.
 

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