The next generation face being in their 50s before they have paid off their student loans and in their 60s before they are mortgage free, research has shown today.
The Scottish Widows study argued that rising life expectancies, combined with people being saddled with large debts earlier in life, mean that today's children should start saving for their retirement at the age of 25 if they want to enjoy a comfortable old age.
Economist Steve Lucas argued that financial pressures from university and housing costs will mean that the next generation will only be able to afford smaller pension contributions, meaning they need to start saving from around 25 years old to prepare for 30 years of retirement.
The move was long overdue and hopefully the workplace is now much more welcoming to older workers. This change does not mean anyone has to be forced to work longer. But it does mean that employers cannot force people to stop, if they are perfectly good at their jobs and willing and able to work.
The fact is that people are simply not 'old' or 'past it' any more in their 60s and, after all the tremendous advances in healthcare and labour practices, there is no reason why those who want to keep working should be forced out just on the grounds of their age.
– Ros Altmann, director-general of over-50s group Saga
We hope that now it is illegal to force someone out of their job simply because they are 65 or over, it will make employers look beyond their staff's date of birth, objectively assess their skills and contributions and trigger a more positive and realistic attitude to older people.
– Michelle Mitchell, charity director general of Age UK