Millennials need more help with retirement saving because they find pensions are too confusing.
Three out of four are saving into pensions but that they want their employers to give them better explanations of how to effectively make the most of their retirement pots.
Millennials – the 27 to 35 year old age group – are widely mocked for their excessive spending on luxury and designer brands, but the reality is they want to save, says the study by financial firm Prudential.
With 69% saving into workplace or personal pensions, many feel they could do better if someone clearly explained their saving goals, says the firm.
More than half (53%) want their employers to offer more help, while a quarter (24%) admitted they find pension rules ‘very confusing’.
Unexciting and irrelevant
One in four recognise that signing up for a pension is not enough and that they need to save more.
More than a third say they are saving as much as they can afford (37%) but consider they need to put more aside, while 16% do not believe they will ever save enough to retire.
This has led 26% to find out more about their retirement finances and see a financial adviser regularly – with 23% confessing they do not know if their savings are on track and 28% confiding they do not know enough about money and other financial matters.
But this does not apply to all millennials as another 24% have no pension and 27% feel pensions are unexciting or irrelevant to them.
Generation Snowflake claims untrue
Vince Smith-Hughes, pensions expert at Prudential said: “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.
“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.”
Researchers spoke to 1,178 millennials to compile the study data.
