How A Finance Expert Would Fight 'Pension Poverty', By Decade |
How A Finance Expert Would Fight 'Pension Poverty', By Decade
Brian Byrnes shared how to tackle it from your 20s to your 60s.
Recently, the Pensions Commission said that 15 million people in the UK aren’t saving enough for an easy retirement. That figure could rise to 19 million over time, they added.
Up to 45% of working-age adults aren’t paying into a pension at all, they added, risking a financial “cliff edge” for ageing populations.
Scottish Widows found that just under a third of UK adults are at risk of “pension poverty”, too.
Here, we asked Brian Byrnes, director of personal finance at Moneybox, whar the term means, as well as how to lower your odds of “pension poverty” from your 20s up to your 60s.
What is pension poverty?
Bynes said that it’s not always as easy to measure as you might imagine.
“Pension poverty is often associated with falling below a fixed income threshold in retirement, but in reality, it is broader than that. Charities such as Age UK define pension poverty as not having sufficient resources in later life to meet basic needs or participate fully in society,” he said.
He thinks the chances of Brits facing this in older age might be rising “with declining home ownership, lower pension participation and increasing financial pressure all contributing to poorer long-term retirement outcomes”.
Still, he added, “there are simple steps people can take throughout their lives to improve their financial resilience later on”.
How can I lower my chances of........