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Banking on the future

When I was young I was encouraged to save up any money I got. The idea struck me as extremely boring so I spent it all on comics.

But with the huge recent pensions overhaul, isn’t it as good a time as any to instil in our children the idea that saving up is more important than ever?

Not only that: the distinction between the different ways of saving needs to be made very clear.

It’s fair to say that most kids, even those that save regularly, aren’t going to look into the potential state of their future pension. They will probably only have a vague idea about what the word means. Someone needs to educate them.

Will the Government want to provide information that may take money away from their own interests?

With the pension changes meaning we can now take our pensions as a lump sum at 55, things are no longer as simple as they once were for future pensioners. Don’t children deserve the opportunity to get a head start, and the chance to understand their options?

It may well be the case that a personal savings plan is more rewarding than the standard pension. In which case there’s a clear opportunity for banks to encourage huge numbers of potential ISA savers.

If banks took the initiative, they could achieve two hugely important things.

One, they could help secure the long-term livelihoods of millions of people who’d potentially lose out with standard pensions by providing an easy-to-understand alternative.

Two, they could bring in millions of new customers keen to save early by educating them of the benefits of ISAs and other saving plans.

Will banks take up the challenge? It would seem crazy not to. At a time when banks need positive press, and when pensions seem more complex than ever, such a mutually beneficial move seems overdue.

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