Well, according to Michael Johnson a research fellow at the think tank the Centre for Policy Studies pensions will cease to exist by 2050.
His argument seems to be based around the fact that pensions are a long term investment and as such young people cannot connect with them. He goes onto say that the 24 to 35 year olds should be encouraged to invest into ISA’s and then can dip into them when they need some cash.
There is no doubt that pensions have not been popular over the past few years and that as little as 30 years ago a pension system that was the envy of the world is reduced to what it is today. However is that really a good reason to toss it on the scrap heap?
If we don’t encourage the younger generation today to save for the future, and most importantly, not be able to dip into it whenever a new car, holiday or the latest tv comes along then as Private Fraser used to say we are all doomed……
Whilst pensions are not the only answer to long term saving it is essential that there is a balance maintained and that rather than being thrown away they are revamped and rethought and become fit for 2050 and well beyond.