The Association of British Insurers has published findings that suggest occupational pensions and tax incentives would best encourage the young to save for retirement. However the greater problem may be affordability, and the government needs to look at this bigger picture when addressing the pension problem. 

The Association of British Insurers (ABI) has published the findings of a survey commissioned to give insight into 18-30 year olds' view of pensions. The results show that young people prioritize more immediate requirements such as a holiday or a wedding above providing for their retirement.

The ABI has recommended that the government increase its efforts to educate the young and increase tax incentives. It has suggested that employers do more to encourage take up of occupational pension schemes and the industry does more to promote long term savings. 

Datamonitor conducted a survey in November 2003 which revealed that, while tax incentives are important, the most influential factor in encouraging pension saving is simply having a higher income. This explains why many young people put off their pension until later in life when they feel they will be better off. 

In addition to this, 60% of individuals surveyed felt they were already saving enough to fund retirement. This is partially due to a lack of understanding of the level of saving required. Most thought 5-10% of income was an appropriate level of savings, contrasting heavily with the 15-20% recommended by the Department of Work and Pensions.

Factors such as rising student debt, massive costs for first time homebuyers, and historically high levels of debt, combine with the apathy of youth to conceal the importance of long-term saving. The ABI is right to highlight the problems of under-saving amongst the young, however the broader picture needs to be tackled. The answer is not as simple as tax incentives and occupational pensions. 

The government needs to take a longer term view, past the confines of the next election, and see how the interaction of its different policies are stifling the ability of the youth to finance their own retirement.