Experts say Generation Y – those born between 1980 and 2000 – need to save 15% of their salary into a pension. But few are. When it comes to savings young people should adopt the mantra of ‘ordinary things done consistently create extraordinary results’. While pension freedom has turned the spotlight on those aged 55-plus, there is a growing concern that younger people are slipping under the savings radar and are heading for a retirement far less comfortable than the generations that have gone before them.
Alex Hoctor-Duncan of fund management group BlackRock said young people had been sucked into a lifestyle of consumerism where it is easier to get into debt than save.
“It is difficult for the first-time saver, for the last 30 years we have had a debt-filled lifestyle that has been created because it is easier to spend,” he said. “It is easier to go into debt than it is to save.”
Hoctor-Duncan said “(T)hat by the time ‘Generation Y’ – those born between 1980 and 2000 – reach retirement in 2035, they run the risk of being worse off than the generation that went before them, something which has never happened before…”.
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[Source: www.citywire.co.uk - June 17, 2015 - Author: Michelle McGagh]