As “Jailhouse Rock” blasted out in the pub last week, I was reminded of an article I read on the BBC news website recently, entitled “Why some Japanese pensioners want to go to jail”. It struck me as a bizarre headline, but one which was of particular interest given my impending trip to the Land of the Rising Sun for the Rugby World Cup! The article highlighted how older people in Japan are running out of money and taking to crime in order to live for free in prison. Around 20% of all offences in Japan are now being committed by people over the age of 65. In a country where life expectancy is one of the highest in the world, and insufficient provision has often been made for those years in retirement, perhaps this should not come as such a big surprise.

Japan is not unique in its increasing levels of life expectancy – or in a likely future increase in the number of people unable to afford to live, at least comfortably, in their retirement.

One of the issues we have faced here in the UK since the widespread introduction of defined contribution schemes has been the lack of a target for members to aim for. Am I saving enough? What will I be able to get in retirement? Both of these questions are ones which have rarely been answered.

And as we know from various surveys, many members of DC schemes believe that the level of contribution at their company is the one that will get them to an adequate income in retirement. For many, and particularly for those on auto enrolment minimums, contributions will leave them unable to afford to retire. One of the Japanese ladies who was interviewed by the BBC as part of their research said "Even women in their 80s who can't properly walk are committing crime. It's because they can't find food, money." Do we want our society to experience something similar in years to come?

Clearly not. Not only does this have implications for social welfare but it also means that we will not have the vital economic boost that is currently coming from the ex-defined benefit population in the UK. It may be a bleak picture, but unless we act soon, we could see mass youth unemployment as “job blockers” are unable to afford to retire and rioting on the streets may become a reality once again – both from the young and older populations.

Against this background, the work that the PLSA and others have been doing recently on setting income targets which will help people understand how much they will need at retirement is to be welcomed. These targets will at least give people something to aim for and they will know if they are not on track for their desired outcome at retirement. The PLSA research suggested that 70% of people would be encouraged to save more by the use of targets.

Presenting these targets as a basket of goods is also something that the average person in the street will be able to understand. Providing a minimum income standard basket of goods, with a couple of more aspirational targets for others to aim for, is a good way of engaging with a broad range of people with different financial circumstances.

The PLSA’s calls for higher AE rates over the next 10 or so years – with a level playing field being suggested between employer and employee contributions – is also a positive move towards increasing saving – as is the “sidecar” idea suggested by NEST. Ultimately, success will be judged by how many people are saving (great progress made here with auto enrolment) and how much they save (more to be done – the PLSA suggest 12% as the next contribution level to target after we go through 8% from AE in April).

And putting pension and savings in a wider financial context, I believe, will be the best way to help people manage their finances more effectively and, certainly for those struggling to put food on the table, will give them a better understanding of how they can make the most of the money they do have, both now and in the future.

So, I’ll definitely be on the lookout for sweet looking old ladies when I get to Japan this year – with my hands firmly on my wallet. And I’ll just have to hope that Japan don’t “rob” Scotland of our opportunity to make it to the quarter finals!