Student debt results in '20% lower pensions for graduates'

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The cost of paying back student debt could reduce graduate pension pots by almost 20% compared with previous generations who received grants and had no fees to pay, analysis from Royal London has shown.

The insurer said having a degree still leads to higher lifetime earnings and a larger average pension pot than that enjoyed by non-graduates - but said the gap between graduates and non-graduates is set to reduce as the burden of student loan repayments leaves graduates with less money to save into their pension. Royal London business development manager Jamie Clark said: "New graduates are already facing a squeeze on their disposable income which is making it harder for them to get a foot on the property ladder. "This analysis shows that a lack of disposable income is also likely to ...

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