29% of so-called ‘millennials’ are not saving anything each month and only 24% are saving into a pension, according to research by the online investment platform rplan.co.uk.
A millennial is classed as someone reaching young adulthood around the year 2000.
The proportion of 18-24 year olds saving into a pension is just 12% but this rises to 28% among 25-34 year olds. However, 29% of millennials are saving into an investment ISA and 49% into a cash ISA.
72% of millennials have left the parental/caregiver home. Those that have say they have an average of £170.78 spare cash at the end of the month after paying for all their living expenses.
Nick Curry, director at rplan.co.uk, said: “The temptation for young people to spend is strong of course, but our research shows that the millennial generation is simply not saving enough. A substantial majority is also missing out on the benefits of tax rebates on pensions and being invested for longer periods.
“The danger is that we will have a whole generation coming through that hasn’t saved enough to get on the housing ladder or with enough retirement savings. Some will have the privilege of an inheritance but even then parents are increasingly having to use savings for their own retirement and care in later life.”