WA20

Young 'facing pension poverty'

Young people in the UK are facing 'a slow pensions timebomb', according to the Trades Union Congress.

With less than half of all people under the age of 30 belonging to a pension scheme, the TUC is warning that a generation is facing poverty in old age.

The TUC calculates that a 20-year-old saving £100 a month will receive a pension of £142 a week at the age of 65, while someone saving the same amount from the age of 35 can expect to receive £71.

The organisation is calling for measures to make it compulsory for employers to set up and contribute to pension schemes.

Brendan Barber, TUC general secretary, said, 'All the evidence shows that employees understand occupational schemes and will join a work based pension scheme, where they find making their own arrangements expensive and confusing'.

The news follows a number of recent reports which suggest that young people will have to work well beyond the age of 65 in order to receive a realistic pension on retirement.

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