This October a new pension scheme will be implemented which will see young people’s pension double by 2070.
The Department of Work and Pensions (DWP) estimate that under the new auto-enrolment plan, the average weekly private pension income will be between £153 and £195 by 2070 for someone who is currently aged 10.
Without the proposed reform, the average weekly pension would be between £86 and £106 by 2070.
Steve Webb, the Pensions Minister, said: “This October we will introduce the most important changes in pensions for a century to help people save and avert a pensions crisis in the future.
“We are living longer yet 11 million of us are not saving enough for retirement. Automatic enrolment will reverse this trend as millions will have a workplace pension and could double their private pension income, on top of a reformed state pension.”