Your portfolio
18 / 19
A Junior SIPP could help you give your child’s pension an early leg-up.
But, asks Anthony Luzio, is it wise to deprive them of what could be
their largest asset for up to 55 years?
Old before their time
T
hat people aren’t saving
enough for retirement is
hardly ground-breaking
news. Yet the figures never
cease to amaze. The Financial Lives
survey, a recent study of 13,000 people
from the Financial Conduct Authority
(FCA), found the state pension is the
main source of income for 44 per cent
of retirees in the UK. It also indicated
31 per cent of adults have no private
pension provision, 57 per cent have
no cash savings or savings of less
than £5,000, and 71 per cent have no
investments at all.
While people who start their
working lives today will be auto-
enrolled into a workplace pension
scheme, the evidence suggests the
amount of money that most of them
are putting away and the level of
risk they are taking on is unlikely to
be enough to fund the lifestyle they
expect to follow in retirement.
And, with the boom in house prices
pushing the average age of a first-time
buyer in the UK up to 30, many are
The Financial Conduct
Authority (FCA) found that
the state pension is the main
source of income for 44 per
cent of retirees in the UK
trustnet.com