Debt generation face bleak future

By SIMON MOON
Updated: 09:42 EST, 19 April 2007

Britain's under-40s were today labelled 'Generation Debt' and warned that they were 'sleepwalking into poverty in retirement'.

The warning came from Citizens Advice, the charity that each year helps millions of people with financial and legal problems across the UK.

Teresa Perchard, the organisation's director of policy, said eight of every ten people believed they could not afford to live on the State pension, but very few of them were doing anything about it.

She was speaking at the launch of www.six-steps.org, a new website created to help people make informed decisions about their retirement.

Perchard said Citizens Advice had seen a huge increase in the number of people with debt problems over the past few years, adding that unbiased information was the key to putting consumers in control of their finances.

Ed Balls, Financial Secretary to the Treasury, also spoke at the launch. He said there was a gap in the availability of generic advice, particularly for people who would find consulting a professional adviser too expensive. 'Raising the level of financial understanding will benefit everyone,' he said.

Six-Steps is run by life and pensions group Aviva, which says the site is purely aimed at helping people plan for the future and does not feature any commercial products. The site takes its name from the six-step plan designed to help users develop an understanding of their own financial situation and retirement planning in general.