Young must save more

A lack of a culture of saving means many young people are heading for financial ruin if they don't buck their ideas up, a leading think-tank has warned.

The International Longevity Centre-UK claims that longer life expectancy and growing care costs is a sitting time bomb unless more is done to encourage younguns to save for their future.

The group called for a 'savings rule of thumb', like the similar 'five-a-day' message, so that more people put money aside for those increasingly wet looking rainy days.

Dr Craig Berry, senior researcher at ILC-UK 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.

'Crucially, however, Government policy to encourage saving must be informed by generational perspective. If we are to get young people to save we must consider their financial and economic circumstances, alongside their behavioural traits.'

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