Mid-life MOTs are great, but prevention is better than cure

interactive investor's head of pensions and savings comments on the extension of the government's Mid-life MOT project.

The government has announced a £5 million extension of its mid-life Money MOT project to workers in their 40s and 50s via employers in some regions, job centres and online, through the Money and Pensions Service.

Commenting on the announcement of the extension, Becky O’Connor, Head of Pensions and Savings, interactive investor, the pension and investment platform, said: “The mid-life MOT is a great initiative, but £5 million will barely touch the sides if this is to become a mainstream thing. 

“Although the definition of ‘mid-life’ brings this initiative to people earlier in life and that's helpful, if someone is way behind with long-term financial planning at this point, with the best will in the world, it’s going to be hard to play catch up. 

“Prevention is better than cure when it comes to treating the problem of insufficient income in later life – and for some, even though it’s never too late to start and something is better than nothing, their 40s may be on the late side for completely making up for lost time. 

“It’s time to start considering quarter-life MOTs, too, before the costs of things such as mortgages and children have started to form a seemingly insurmountable barrier. The early years of working life are also a time when the opportunities to benefit from compounding of returns are greatest.

“By age 25, workers may be at a point where they are receptive to some very basic guidance on what they should be doing with their pension – so if they wish to, they can forget about it again and get on with life, before their next check in.

“The additional support for older workers that forms part of this package is very welcome - the issue of adequate roles for older people who need or want to continue to work is increasingly a social priority - particularly for those with inadequate pension provision.”