In a survey conducted by Prudential, more than half of people under the age of 35 (millennials) want their employer to do more to explain pensions and benefits.
The survey was completed by 1,178 millennials and showed that 24% of these people do not have a pension fund, with a further 27% not considering pensions to be relevant to their generation.
Vince Smith-Hughes, Prudential pensions expert, says: “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.”
He adds: “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.”
The survey also outlined that 37% of millennials believe that they are saving as much as they can afford to but even then, they do not think it will be enough for a comfortable retirement. However, more surprisingly, 16% believe that they will never be able to afford to retire.
Kim Lerche- Thomsen, founder and CEO of Primetime Retirement, said: “Supporting millennials and ensuring they are engaged with pensions at an early age is key to ensuring future generations enjoy a 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 to issues head on and raise awareness of the importance of planning for retirement from an early age.”
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