Millennials are just as responsible as other generations when it comes to saving into pensions, and would like more information on doing so, a study by Prudential has found.
The study found nearly seven out of 10 (69%) of under-35s are saving into pensions either through work or in personal scheme, and more than half (53%) of those said they wish their employer would explain pensions and benefits. Some 24% added they find pension rules very confusing.
According to Prudential, two thirds (66%) of millennials 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.
Meanwhile just under a quarter (24%) of the 1,178 adults surveyed admitted to not having a pension fund currently, and 27% said pensions either do not motivate them or are not relevant to their generation.
According to Prudential, there is evidence of a responsible attitude towards retirement planning from millennials – more than a quarter (26%) have found out more about their financial options and current situation and say they see a financial adviser regularly.
However, over a third (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, while an additional 16% do not think they are ever going to be able to afford to retire.
More than two fifths (23%) admitted they do not know if they are on target for retirement saving and a further 28% did not feel confident with money and financial matters.
‘Generation snowflake’ claims untrue
Prudential pensions expert Vince Smith-Hughes said millennials are as responsible as other generations when it comes to pensions, and talk of ‘generation snowflake’ feeling entitled to an easy life is not true.
“[Millennials] 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 saving,” he said.
“Rules can be confusing, especially when you are early into 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.”