‘Education needed for retirement saving’: WMA

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
‘Education needed for retirement saving’: WMA

The government must invest more in education on long-term savings and investments if people are to retire in any comfort, the head of the Wealth Management Association has claimed.

WMA chief executive officer Liz Field said that nothing less than a cultural change was required: “Many people currently believe that investing in shares is an option only open to the very wealthy, but it is something accessible to all.

“They have also been left confused by the changing face of pensions recently, whether it is pensions freedoms, auto-enrolment, cutting pensions tax relief, or the discussions about using pensions as Isas.”

Ms Field said she could also envisage broader economic gains from this investment: “A wider range of investors means a wider range of people interested in company success, and more people who can hold management accountable for their decisions.”

The warning came after research by PricewaterhouseCoopers revealed that 6 in 10 people have put off saving more into their pension because they do not understand the system, with women and younger workers particularly unlikely to put money aside.

Adviser view:

Greg Heath, managing director of Lancashire-based IFA Derbyshire Booth Financial Management, said: “I think education is imperative. Everyone just thinks that money makes money, but there is more to it than that.

“Decisions made early on in life determine where you end up. I can see that from many of my clients who did not come from wealthy backgrounds but who started early. Unfortunately, I would say the PwC figures are an understatement – it is more like eight in 10 who do not save enough.”