Commenting on today’s IFS report on problem debt and low-income households, Tiffany Tsang of the ABI said:
“Young people are now laden with greater student debt; they’re more likely to be renting later on in life; and the vast majority of people joining pension schemes for the first time will be on Defined Contribution rather than Final Salary schemes. All of these societal shifts are likely to have an impact on consumers’ long-term saving behaviour.
"The young and those on lower incomes may have to work longer beyond the state retirement age and this brings challenges that need to be tackled. Today’s research does well to identify the issues, but there now needs to be assessment of the impact of debt on future behaviour to ensure the UK’s growing household debt does not have a detrimental effect on people’s ability to retire comfortably.”