'Greater flexibility needed' in pension saving

Greater flexibility may be needed in pension saving, the head of investment propositions at Scottish Widows has said in response to a new study that shows that the next generation may have to start saving at 25 years old to retire by their 70s. Iain McGowan said:

Offering more flexibility that combines the accessibility of an Isa with the tax benefits of a pension could help future generations face up to the twin challenge of saving for short-term financial hurdles like a deposit for a mortgage or a wedding while at the same time setting aside enough for retirement.

– Iain McGowan, head of investment propositions at Scottish Widows

Advertisement

Start saving at 25 for retirement

Today's children must start saving for their retirement at the age of 25 to enjoy a comfortable old age, according to research. The next generation will be in their 50s before settling their student loans and in their 60s before being mortgage free.