A practical solution, then, is likely to be found by investing in a pension for later life.

Mr Cameron continued: “Pensions however, benefit from government tax relief and £100 saved into a pension immediately becomes £125 if you’re a basic rate taxpayer.

“By investing your money in the stock market, you also increase your chances that it will grow further over time.

“If you achieved a return of 4.25 percent a year on your initial £125, it would be worth £354 in 25 years’ time.

“Furthermore, if you’re lucky enough to work for an employer who’ll match your pension contributions, the benefits of pensions are even better as the £125 personal contribution including tax relief will be boosted by an additional £125 from your employer.”

However, while saving for the future has arguably never been so important, making sure individuals are financially secure in the present is also key.

Source Google News