The Bleak Future Of Young UK Pension Savers
The millenials may have had the best education and learning experience of today thanks to the Internet and other advanced technologies but they’re paying for the errors of their predecessors.
Those who are still below the age of 50 will receive lower pensions than Baby Boomers and those older than them. Due to the impending tax relief cuts on pensions, inequalities between generations are likely to widen.
Hargreaves-Lansdown, a financial think-tank, calculated that people living past their retirement age received better tax relief than millenials. Their pension pots are almost a quarter larger than those in their 50s.
Compared to the pension pots of those in their quarter-lives, their pension pots are immense.
Final salary pensions schemes contributed greatly to the previous generations’ generous pension provisions. Final salary schemes in the 1960s had 12 million individuals receive very high pensions with guaranteed benefits.
According to observers, Chancellor George Osborne could spark an inter-generational war. His upcoming brutal crackdown on tax breaks for savers in the following month’s budget can cause more havoc than resolution in many cases.
Individuals aged around 60 years old have a pension pot worth £149,300. This is large compared to the £112,000 40-year-old retirees have in their pension pots.