Abacus Daily Debt News

Saving should start young to avoid debt, expert suggests

Financial planning is the best way to avoid debt management issues as you get older, one specialist has claimed.

Chief executive of savings organisation the Children’s Mutual David White said that people should not be taking on more debt in their later years as it will make it very difficult for them in retirement.

He said: “The only way we can turn this whole situation around is … to have people arriving at adulthood with financial capabilities.”

This way young adults will be prepared for the financial burden of studying, obtaining a mortgage and pension schemes, Mr White added.

Current problems with pensions have been made worse by parents having to bail out their 18 to 30-year-old children, he remarked.

In recent news, Saga Savings conducted research revealing that grandparents continued to help members of their family with money problems despite the recession.

According to the figures, 70 per cent of those aged over 50 had given financial support to a relative in the last five years.

By Francis Finch