Workplace pensions transformed retirement saving, and Pete Glancy at Scottish Widows believes similar schemes could help address the nation’s short-term savings crisis. With millions at risk of poverty in later life, bolder action such as auto-enrolment may be needed to build financial resilience.
Pete Glancy, Head of Policy at Scottish Widows, commented:
“Workplace pensions have revolutionised how we save for retirement and there’s no reason that the same can’t be done for the nation’s shorter-term savings goals. The positive ripple effect could be far reaching. We know that building financial resilience, through emergency savings pots or cash-savings buffers, can unlock people’s confidence when it comes to longer-term financial goals, like retirement, and support the 15.3 million people who are at-risk of poverty in later life.
“Uptake of these workplace savings schemes has, so far, been poor. The government’s intervention is positive but they may need to go further than clarification, and consider an auto-enrolment style initiative to boost participation.
“It’s key as the government tackles the nation’s savings levels, that none of this is looked at in isolation. There is more work to be done to truly support people’s financial journey throughout their lives, from starting to save, to home ownership and into retirement.”
