‘Putting off’ retirement planning is placing young people at risk of a financially unsustainable future, and society is failing to instil a savings culture in the young, says a new report by the International Longevity Centre-UK (ILC-UK).

The report notes the trends which are likely to impact on long term saving, including increased longevity, fiscal problems caused by population ageing, an increase in flexible working, and growing care needs. In the future, most people will be enrolled in money purchase (defined contribution) rather than final salary pension schemes, requiring individuals to bear more responsibility for their retirement income. The report also points out that buying a house will become more difficult – arguing that an obsession with investment in housing may be inhibiting saving for a pension.

Dr Craig Berry, Senior Researcher at ILC-UK and author of the report said:

“Planning for retirement may be an alien concept for many young people, but delayed transitions to adulthood in terms of owning a home, establishing a career and starting a family mean that young people need to start saving for a pension now.”