Financial education is key to retirement planning

Europe must ensure that people have access to financial education and information so they can make confident choices about their retirement said Stephen Timms, Minister for Pension Reform at an EU Presidency meeting in Brussels.

With at least three million people in the UK not saving enough it is crucial that financial education and information is available to help them plan for their future. Ministers, social and pension partners from across the European Union shared and discussed the steps they are taking to ensure people have the information they need to make decisions on retirement provision.

Stephen Timms said:

"Europe is facing a huge challenge. Across the EU over the next 25 years the working age population will fall by 7% while the population aged 65 and over will rise by 51%. We are living longer and have high expectations of our lifestyle in retirement.

"We must help people plan actively for their retirement. Financial education and information are important for setting realistic retirement expectations. We need to make sure that people are able to make choices which will help them realise these expectations.

"We also need to support people on low incomes to decide how they can build up their pension entitlements. We are working with partners in the voluntary sector to ensure that we are reaching people approaching retirement. We are also working with the Financial Services Authority and other partner organisations in its Financial Capability Strategy, which will include schools and higher education, to ensure that young people are confident in decision making about financial planning and retirement."

The Government's Informed Choice programme for Pensions - with the support of partners in the voluntary sector, pensions industry and employers - promotes access to the information people need to plan effectively for their retirement.

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