More than two-thirds (71%) of millennial respondents do not understand or are unsure about their pension investments, according to research by Barnett Waddingham.
Its Generation why? survey 2016, which surveyed 506 employees, also found that 72% of generation X respondents (aged 30-49) do not feel certain about their understanding of pensions investment.
The research also found:
- Just 4% of millennial respondents earning less than £20,000 a year understand pension investment, compared to zero generation X respondents at that salary level.
- 89% of millennial respondents (aged 18-29) would contribute more into their pension if they could afford to.
- Almost half (44%) of millennial respondents cite saving for a house as their financial priority.
- 42% of generation X respondents are most concerned about paying off their mortgage.
- More than half (52%) of baby boomer respondents (aged 50 and above) name retirement as their biggest financial priority, and 43% say the financial pressure of retirement keeps them awake at night.
- 88% of baby boomer respondents understand their retirement options.
Julia Turney (pictured), head of platform and engagement at Barnett Waddingham, said: “Our research shows that early financial education is critical, the earlier someone starts to save, the easier it should be. However, age and affluence play a significant role when it comes to saving for the future. Those who earn more might be able to afford to seek financial advice, but what about those who cannot afford it? Will this group be left to find out things for themselves and make mistakes along the way? Or, will employers step in to provide more financial education, recognising the significance of personal financial health in overall employee wellbeing?
“There are encouraging signs that employers are investing into the overall wellbeing of their employees, spending time to ensure they have financial wellness and rectifying any financial issues that may arise. Supporting employees in this way should result in happier and less stressed individuals, which can only be good for the employer.”