YOUNGSTERS FACE WORKING TO 72
By Gavin Pearce
Young people of today may have
to work until they are 72, says a report by the Pensions Policy Institute.
The analysis, done for the BBC,
found that people in their twenties and thirties will have to work further
into old age to avoid poverty in retirement.
Either they can finish work at
65 and accept a dramatic cut in their income, or they must continue in
employment for another seven years, the report says.
Longer life expectancy and low
stock market returns mean that a 25-year-old saving today would have to
work for 47 years to receive a pension income worth two-thirds of their
salary.
Paul Cornell, student advisor at Harrow Campus, said students should start planning their pension arrangements before starting work. “They should think about getting a pension either through the employer or look at those offered by private companies, although private ones tend to be more expensive.”