Financial education needed to help with pension problems

Wednesday, November 9, 2005

The minister for pension reform has said that European states must do more to help people plan for their future.

Speaking at a European Union presidency meeting in Brussels, Stephen Timms said that education is the best way to inform people of what pension systems are available and how they best can act to invest in their future.

"We must help people plan actively for their retirement," Mr Timms said.

"Financial education and information are important for setting realistic retirement expectations."

He added: "We need to make sure that people are able to make choices which will help them realise these expectations."

A Prudential survey in September revealed that only 20 per cent of people were saving enough for their future through a pension, which helped bring the problem to public attention.

Despite this, and jargon-busting guides such as the one produced by the National Association of Pension Funds (NAPF) being made available, the Department for Work and Pensions estimates that at least three million people in the UK are still not saving enough for retirement.