UK - Many people find it difficult to save for retirement, which these days can last for more than 20 years, says Mary Davies, director at the Pre-Retirement Association.
“It will be even more difficult as longevity increases,” she adds.
“Perhaps we need to consider afresh work and retirement in the 21st century.
“Currently the reason many people leave work is age-related. Why not encourage people to choose their own time to move between work and retirement? That way the course of life would no longer be a period of education followed by work, then retirement at a fixed age.
“Instead there would be a more fluid situation with people choosing a lifestyle with a variable mix of education, work and leisure. This would, of course, have implications for saving for retirement and for retirement itself.
“For some people it would mean that they never give up work altogether because it is such a valuable part of what they want to be. For this to be possible, pensions may need to be gradually replaced by an integrated saving system, with tax benefits.
“Workers, their employers and the government would all save into the same life-long pot. Each person would have their own and money could be removed from the savings for specified activities up to specified limits.”
Davies highlights the need to engage young people on pensions.
“Young people are not turned on by pensions.
“A way of saving which includes housing and which can be accessed, at least in small part in the not too distant future may be more appealing.
“Much of the present discussion about the future of pensions will not deal with many of the issues, which lead to the increasing divide between the haves and have-nots. Another reason for a fresh approach.”
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