Consumers should be scared into long-term savings if Britain is to avoid seeing the current savings gap turn into a full-blown pensions crisis, warns a pension expert.
Mike Morrison, Winterthur Life’s pensions strategy manager, says 'scare tactics' might be one of the solutions to the UK's present black hole in retirement savings.
Morrison believes introducing education - both in the workplace and as part of the school curriculum - is the way forward in order to encourage people to save for the future.
But while advocating education, he admits this is unlikely to have an immediate effect on people's savings behaviour.
Instead, they should be "scared" into saving, he argues.
The government's HIV/AIDS campaign out some years ago - making people more aware of the risks they faced - proved very successful, he says.
A similar advertising campaign, highlighting the need to put away funds for retirement, could spur more people to save, he adds.IFAonline
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress