Manas Pratap Singh’s Post

James Rimmer FCMA MBA Steve Herbert would love to pick your brains on this btw.

I’d ask - how are organisations helping employees?   Employers – how well-versed are your employers on workplace pensions? Some immediately have an upper hand because they simply know more, but how can you level the playing field to make sure your employees can make the most out of their pension scheme?   Financial transparency and building knowledge is key. Those with the knowledge should be democratising learnings so that employees have a better understanding of finances and are able to better save for retirement. Does everyone know about tax-saving schemes like ISAs, investing in things like property (if this is possible) and even what consistent saving looks like?   To young workers – it’s never to early to start saving. Figure out what this sustainably looks like for you, perhaps it’s being able to contribute a sizeable amount to your pension and ensuring this is matched, or maybe it’s consistent weekly contributions. Upskill and build knowledge around finances and apply this in the best way for you. 

—it's important to start saving and investing early and consistently 🙄

Helen Morrissey

More and more we're finding that employers are providing impartial financial advice & guidance as part of their well-being strategy. Personally, I also think this subject matter should be taught as part of the curriculum at senior school, especially in the later years - money management is a skill!

I would encourage people to do what they feel is the best for them. You cant take money with you when you're gone and moments all too easy get lost thinking about the past or future. Live for the moment. Appreciate a big generalisation but think living is a message that needs sharing more these days.

Great advice on this thread so far! I think the message is pretty clear: start early and with whatever you can, even if that's not very much. Let's face it, pensions are pretty complicated and push at the outer edges of their financial knowledge for most people, so let's try to break it down a bit ... For those who are employed, if possible, try to maximise "employer matching" which is what your employer will pay into your pension pot on your behalf. Under 'auto enrolment' you pay 5% of salary, your employer pays 3% PLUS tax relief will also be added to your pot. Some employers offer better percentages than this, so it's worth checking if by, say, paying another 1% you can gain access to much more than that. And if you're not automatically enrolled into your employer's pension scheme, for example because you're under the age of 22, you can request they enrol you. This is worth mentioning because early savings have a much greater impact on your pension pot than savings decades later - due to the power of compound interest. Finally, try and understand what pension pots you've got already and keep your contact details updated with your providers so that they can ensure you get your pension when the time comes.

I fear young people have lived through a period where they are not taught any financial literacy skills, actually are encouraged to look at debt burden in an ethereal and ambiguous way and their financial capacity has no spare capacity or opportunity. University tuition fees/ loans are example where they are told not to look at these as debt because 'they might be wiped off'. Young people are legally paid a lower wage than the legal minimum of older people doing the same job resulting in a lower ability to meet the cost of living and a future of financial independence further away, more out of grasp. Its impossible to tell a young person to think about saving for their retirement while paying them peanuts. The average UK wage is £26,192 (much less for a young person) so they will be struggling to pay rent, buy food and keep the gas supply connected rather than saving money for a future that seems way, way beyond their dreams. In short - we need solutions that teach financial literacy, improve wages, reduce living costs and then encourage young people to start saving for their future. Interesting discussion point this but I urge caution about looking at young people attitudes before they are able to get more disposable income.

The current state of affairs for young people is frustrating. The current system means that young people will spend their lives giving to bosses and corporate companies who could replace them in a heartbeat, living paycheck to paycheck and only being able to do things at a weekend and getting only a few holidays a year and not having anything left at the end of it. Millennials should be able to follow their dreams! The way the system is, it is imperative to make passive income and know how to use this with a pension to maximise wealth. The best way to do that is through property, where the asset value on average has trebled in value over the last 20 years. And the best way to succeed in property is through investment education.

It is something I have been saying for sometime with the demise of final salary pensions in the private sector the gap in retirement income between private and public sectors is going to be immense in about a decade if not sooner . It is unlikely that they will be able to afford to fully retire and the only real solution is to stop the public sector tax payer funded pensions and increase the state pension for everyone . Of course sadly this will never happen as the people who legislate this have the most to lose. The obvious is the younger the better , possibly grandparents open pensions and funding each year if they can instead of a child ISA but the reality facing millenials is desperate and to keep raising the state pension age is criminal it should be reduced .