New research from Prudential shows millennials are focused on saving for retirement and want more support.
Its study found 69% of under-35s are saving into pensions either through work or in personal schemes but they are struggling for help. 53% wish their employer would explain pensions and benefits and 24% say they find pension rules very confusing.
66% have signed up for workplace schemes. However, many recognise they are not saving enough with 23% saying their current workplace or personal pension contribution is not high enough.
Just 24% admit to not having a pension fund currently and 27% say pensions either do not motivate them or are not relevant to their generation.
26% have found out more about their financial options and current situation and say they see a financial adviser regularly.
Vince Smith-Hughes, pensions specialist at Prudential, said: “Millennials are as responsible as other generations when it comes to pensions and the talk about Generation Snowflake feeling entitled to an easy life is not true.
“They are often under a lot of pressure to get on the housing ladder and pay off their student loans at the same time as trying to prioritise pension savings.
“Rules can be confusing, especially when you are early in to your career which is why we advise most savers to seek financial advice when possible. Employers can help to ensure they provide information and support around their workplace scheme.”
37% of millennials believe that they are saving as much as they can but still don’t think it is enough for a comfortable retirement. An additional 16% don’t think they are ever going to be able to afford to retire.
However, 23% admit that they do not know if they are on target for retirement saving and a further 28% do not feel confident with money and financial matters.
Kim Lerche-Thomsen, founder and CEO of Primetime Retirement, said: “That the younger generation is concerned and confused is not entirely unsurprising but unfortunately, this does not necessarily get better as they age. Our research shows that this lack of knowledge continues in later life, with our research showing that 27% of over-55s want more resources to be made available to help people make informed decisions that will impact their income in retirement.
“Clearly, supporting millennials and ensuring they are engaged with pensions at an early age is key to ensuring future generations enjoy a financially comfortable retirement. With more and more people going into retirement with insufficient savings and Prudential’s research suggesting that some people may only have the state pension to rely on, we are facing a looming pensions crisis in the UK. This is why it is vital that we work together as an industry now to tackle the issues head on and raise awareness of the importance of planning for retirement from an early age.”
