13:47 18 September 2014
More than 250,000 people netting more than £52,000 are putting aside a less amount than they need to in order to have sufficient income during old age. Fifty per cent of workers are staring at poor living conditions at old age since they are not sufficiently contributing to their pension schemes. Rather surprisingly, workers in mid and higher income levels are among those putting in the least for old age.
This trend has caught the attention of ministers who are disturbed by the fact that high-income earners are not saving enough even as the state has put up measures to help low-income earners save sufficient pension. They urge mid earners to put aside any salary raise in their pension schemes.
Workers are also encouraged to work longer so as to have enough to pay for their utility bills in the present and in future. Workers are urged to consider their pension savings as a personal responsibility and think through the life they would wish to have at old age. Even as the budgets of many families remain tight, the economy is slowly improving and individuals and couples should be able to put aside more money as they get a pay rise. While no one can be accused for prioritising current needs to future obligations, putting aside a few pounds every week can go a long way to alleviate an otherwise chaotic life in old age.
Of course, the government can do a lot, but it cannot absolve every one of his or her personal responsibility. It all boils down to individuals and couples considering their own expectations as well. Everybody has their own ambitions and they can only decide the kind of income they want to have in old age at a personal level or as a couple.