Research published by Blackrock claims that middle-aged (45-54) Britons are at risk of becoming a “lost generation” when it comes to providing for themselves in retirement.
Commenting on the report’s findings, Barnett Waddingham consultant Malcolm McLean said:
“There is no doubt that people in this particular age bracket are a type of “squeezed middle” if not quite a “lost generation”.
“Because there has been a tendency over recent years to start families at a later age, many middle aged people now still have young children dependent on them whilst in some cases they also have to help support their own elderly parents. Being caught between the two is especially hard. In their minds the day to day battle to keep their heads above the water, put food on the table, pay the mortgage, heat their homes etc. is understandably quite likely to take precedence over any long term plan to save for their old age.
“And yet the stark reality is that if they do not start to save in some meaningful way, sooner rather than later they face the prospect of having to work on (always assuming they are capable of doing so) well past normal retirement age and/or being financially impoverished throughout their retirement years.
“With automatic enrolment now being rolled out to pretty well the whole of the employed workforce over the next few years there is an opportunity for people in this age bracket as well as others to start contributing to a workplace pension scheme. It is not too late for most of them to do so and they should benefit from an employer’s contribution and Government tax relief to boot. Opting-out which is, of course, their right to do, means they are effectively giving back wages and turning away free money – something that is almost certainly not in their long term interests in all but the most exceptional circumstances.
“For some people auto-enrolment may be too little too late. For this “lost generation” it could be a (later) life saver."
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