Survey: Millennials pessimistic about retirement prospects

News


20 Jul, 2018

Survey: Millennials pessimistic about retirement prospects
 
Nearly a quarter of millennials think that they will not be able to ever stop working, with a fifth believing that a state pension will not exist when they reach retirement age, a new poll has revealed.

The findings came from a survey of more than 2,000 18-35-year olds conducted by Printerland.co.uk, which also discovered that another 25 per cent of this age group fear that they will need to continue working in some form after they retire.

A third of respondents cited that they were still living with their parents and 15 per cent of them do not see themselves ever being able to buy their own home.
 
This, says the report, is largely to do with millennials’ ability to save for a home having been considerably reduced by their pension contributions, with the average 18-35-year-old saving £252 each month, with half of that figure going into a pension. 18 per cent go on to say that they cannot save any money besides their pension contributions.

The survey has also discovered that nearly half (45 per cent) of respondents do not know how much money they will have accrued in their pension when they retire. In addition, nearly a quarter are not aware how their pension works and when asked to estimate, the typical millennial expects their final pension fund to be worth £226,803.
HR manager at Printerland.co.uk, Catherine Brennan, said: “While millennials are aware of pensions, and understand they should be investing in them, some important details are still misunderstood.

“Researching and becoming educated in these details may be the next step for this generation.”
 
In a similar vein, in a global survey last month, deVere found that 89 per cent of all new, working age clients did not realise how much money they would need in order to fulfil their own retirement ambitions before they began working with an independent financial adviser.
 
Of the findings, Nigel Green, founder and CEO of deVere Group commented: “It is very alarming indeed that nine out of ten workers are financially sleepwalking into their retirement.
 
“The poll concludes that the overwhelming majority simply do not know just how much they will need to save during their working lives to fund the retirement they desire. Not knowing how much they will need for something as important as funding their retirement is worrying.”