The pensions system we’ve had in place for the last 100 years is changing. Responsibility has shifted from the government and companies, to the individual. In the UK we lack both the confidence and knowledge necessary for financial security.
We in the industry need to take up the responsibility. Levels of financial literacy in the UK are low. 44% of parents say they do not feel confident managing money. And only 40% of 7-17 year olds say they’ve received financial education in school.
The evidence is that we form our behavioural attitudes to money by the age of seven. And yet in the UK we don’t teach our children basic financial education at primary school.
Unless we take action today, 30 years from now a lot of people will retire in poverty. It’s not enough to wait until people are in their 20’s to make mistakes and learn from them. It’s better to start early and learn and build financial capability in an age appropriate way.
As an industry we want to turn the tide on the lack of financial education. That’s why Redington have joined forces with other like minded firms to support the ‘Kickstart Money‘ initiative. Which will provide financial education to over 18,000 primary school children. And hopefully provide the evidence to put financial education on the primary school syllabus. Helping nearly 9 million children and their families feel confident about money.
We are proud to support this project as it supports our ambition to make 100 million people financially secure.
If we are going to solve the lack of financial capability in the UK, it requires holistic action in the same way we are tackling climate change. Our government needs to set the right policies. Our schools need to provide financial education from reception to graduation. The savings and investments industry needs to provide advice and products to help people on their financial journey. And 2017 must be the year we address this.