THEY are often labelled ‘Generation Snowflake’, caring more about frivolous spending than saving for the future, but new research from Prudential has found Millennials are in fact focused on retirement.
A study conducted by the insurer found that 69 per cent of under-35s are saving into a pension through either a workplace or a personal scheme, driven partly by the government’s auto-enrolment initiative. However, many recognise they are not saving enough – 23 per cent said their current workplace or personal pension contribution is not high enough. Over a third (37 per cent) believe they are saving as much as they can but do not expect it to be enough for a comfortable retirement.
Millennials would also like more support in order to better understand the system – more than half said they wished their employer would explain pensions and benefits, while almost a quarter said they find pension rules confusing.
Worryingly, around one in six said they do not think they will ever be able to afford to retire. Nearly a quarter do not have a pension fund, and 27 per cent said pensions either do not motivate them or are not relevant to their generation, so the industry clearly still has some work to do to change attitudes.
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“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,” said Vince Smith-Hughes, pensions expert at Prudential.
“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.”