Graduates auto-enrolled into pensions should be allowed to use their employers' contributions to pay off their debts, Ros Altmann, director-general of Saga, said.
UK students starting courses in 2012 could face average debts of £53,000 by the time they graduate, according to the Push University Guide, published today. Annual average debts have risen 6.4% in the past year to £5,680, it said. The problem of student debt will be exacerbated by the government's removal of the cap on tuition fees, allowing universities to charge up to £9,000 per year for teaching. "The problem with pensions is that once the money is in, it is locked in for decades. For young people, that is a very off-putting thought," said Altmann. "However, if they do not sa...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes