“The FCA’s findings are a stark reminder of how heavily people across the UK rely on the State Pension - the lowest state pension of any developed country. This is far from enough for the vast majority of people to live comfortably in retirement and reinforces the value of auto-enrolment as a vital addition to people’s state pensions.
“The survey highlights, worryingly but perhaps not surprisingly, a growing generational gap between older and younger people, with younger people more likely to borrow than save for the future. While the financial burdens placed on them, such as student loans, families or house buying, means saving for the long-term can become less of a priority, when it comes to retirement, the earlier people can start saving the more investment growth can do the heavy lifting for them.
“Employers, the pensions industry and the government have a responsibility to ensure people understand the benefit of their workplace pension, by using methods such as the communications toolkit we provide to help employers talk pensions with their employees at every stage of their retirement savings journey.”
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