Young adults are being warned that they could end up the live fast, die poor generation.
James Purnell, government minister for pension reform, told delegates at an Institute of Public Policy Research event that in the last five years the number of 20 to 29 year olds saving for retirement fell from a third to a quarter.
“At the moment young people are acting as if they expect to be able to fund a longer and longer retirement with less and less saving,” he said.
“It is striking how fast time spent in retirement is lengthening. In 1950, the average retirement lasted about ten years. Today it’s around twenty. In 2050, if we didn’t increase the state pension age, it would be around twenty-five years.”
The government is hoping that recently announced reforms, such as auto-enrolment in pension schemes – will make it easier for more people to save.
Meanwhile, the Association of British Insurers (ABI) has launched a campaign to encourage younger people to put more in the piggy bank.
The Save More Now campaign will bring together consumer groups, trade unions and other organisations to highlight the importance of putting away for the future.
© Adfero Ltd