Four in ten millennials have no pension savings

News


30 Jun, 2017

Four in ten millennials have no pension savings

A new report from YouGov has shown that a large proportion of the UK’s millennials have no pensions savings, with many saying they don’t have a good enough understanding of pensions to make an informed decision.

The Bridging the Young Adults Pension Gap study found that 44% of 18-34 year olds admitted to having no pension savings at all, compared to 22% of 35-54 year olds and 20% of over-55s.

A lack of knowledge is clearly an issue for many, with three in ten under-35s (27%) confessing they simply don’t have enough knowledge of pensions in general.

Indeed, even millennials that do have a pension admit that they do not have a clear picture of what is involved, with 14% not able to confirm which type they hold.

It’s a picture that is causing concerns to the age group, with well over half (58%) anxious about their ability to support themselves when they stop working to enjoy a long and fulfilling retirement.

The state pension is not seen as a sufficient answer by over a third of 18-34 year olds, with 35% agreeing with the statement: “If government spending for pensions continues as it is, the state pension will cease to exist at some point due to funding pressures”.

The place of pensions among the priorities of the UK population was also revealed by the report – with putting cash away for retirement a top consideration for 21% of adults, compared to saving for a holiday (32%), ‘stashing case for a rainy day’ (29%), buying a property (14%) and saving for house improvements (14%).

Research executive for YouGov Kate Fillery, said: “With a large ageing population eating into the government’s ability to provide a state pension, and many young people unwilling or unable to feed into pensions of their own, these figures again suggest a tricky retirement for many”.

Today's earlier news - UK economy grew by 0.2% and households saving less, says ONS