A GROUP of leading financial services companies are warning of a savings crisis that could grip the UK as early as 2035, unless drastic action is taken to persuade people to save more.
A report published today by The Savings and Investments Policy Project is calling on the government, regulators and consumer groups to work together to promote saving and investment across the UK in order to prevent vast swathes of the country falling into financial difficulty in their older years.
Tony Stenning, chairman of the project and head of UK retail at BlackRock, warned that those aged 35 and under will be hardest hit.
“Fear, confusion and a lack of understanding is exacerbating this problem through inactivity, apathy and disengagement. Today’s pensioners are benefiting from the ingrained savings habits and more generous pensions of the past – but the future is going to be different,” he said.
According to the report, people aged under 35 will have just two thirds of the time to save twice as much money as their grandparent’s generation. The group wants to see a significant change in UK attitudes to money.
A government spokesperson said the coalition is already taking steps to tackle the savings gap with changes to pensions, adding: “With us all living longer, it’s vital people act now to save for later life.”