Young people warned over pensions

Expenses such as housing costs make it difficult to save for old age

Most young people will face retirement in poverty unless they save for a pension, according to the TUC.

Only a quarter of working men and a third of working women aged between 18 and 24 have a pension, says the union.

It is launching a leaflet outlining the importance of saving for old age which will be sent to the colleges and universities around the UK.

The TUC's Frances O'Grady will tell a conference in Eastbourne debt means tough decisions are needed.

'Bold and brave'

The deputy general secretary will tell delegates at the conference for young people that housing costs as well as student debt are among the problems that lead to awkward financial choices.

People aged 25 will need to pay 11% of their wages into a pension scheme to get a reasonable income in retirement, says the TUC.

However, the figure will be higher if the decision is put off for several years.

Ms O'Grady will say: "But if pensions saving is left too long, reality will bite hard for young people when they hit retirement."

She will press for compulsory pension contributions from employers.

And she will also urge the government to be "bold and brave" where pension reforms are concerned.