Our latest article in the Too Poor To Retire series explains what’s making younger generations less well off than their parents
If housing wealth were used to provide an income in retirement, researchers calculate that the savings gaps, discussed in our previous article, could be halved. But few retirees draw on property wealth today, while home ownership rates are falling.
Numerous studies have predicted a large retirement ‘savings gap’ — the shortfall in current or projected pension provisioning from a benchmark level of retirement income. The figure of 70% of pre-retirement income has become the heuristic benchmark, often termed a 70% ‘replacement rate’. Though sometimes criticised for arbitrariness, it is actually supported by the economic and social science literature since the 1960s (Modigliani 1966).
A summary of our research report highlighting why younger generations will have to work more, save more or spend less
Why younger generations will have to work more, save more or spend less.
There is mounting evidence of the risks facing young people who spend an ever-increasing part of their lives online. The school curriculum has been updated to include guidance on acting safely online, and the government is reviewing ways to control how much time children spend on social media platforms. But what can parents do to reduce the dangers of a digital world? Two experts offer their insights and advice.