Financial education and information is crucial for helping people plan sensibly for their retirement, Stephen Timms has told an EU presidency meeting in Brussels.
Speaking at the ‘Informed Choices: Retirement and Savings’ event in Belgium, Stephen Timms, the Minister for Pension Reform, said Europe was facing a huge challenge over the next 25 years, as the working age population will fall by 7%, while the number of people aged 65 and over will rise by 51%. He added that as we are living longer, we have higher expectations of our lifestyle in retirement.
With at least three million people in the UK not saving enough for their retirement, the joint EU/UK Presidency event focused on the importance of financial education and information in retirement planning. Ministers, social and pension partners from across the EU took part in the event, discussing the steps they are taking to ensure people are have all the information they need to make decisions on pensions provision.
Stephen Timms said they must help people plan actively for their retirement, as financial education and information are important for setting realistic retirement expectations. But added that they needed to support people on low incomes to decide how they can build up their pension entitlements.
He continued: “We are also working with the Financial Services Authority, and other partner organisations in its Financial Capability Strategy, which will include schools and higher education to ensure that young people are confident in decision making about financial planning and retirement.”
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