The majority (84%) of younger workers (25 to 35 year olds) would like financial help from their employers in order to plan for their future, according to research by Aviva.
The research found that many employees in the ‘foundation generation’, so called because they are laying the groundwork for their finances, would like to save into some sort of pension within the next five years, either with their employer (26%) or through a private personal pension (22%).
The main reason respondents do not pay into a pension provided via their employer is that they either cannot afford to pay into it (20%) or they work for an organisation that does not offer one (19%).
This generation acknowledges the difficult environment in which they are establishing their careers: 89% have been affected by the challenging economy, 29% are more careful about what they spend, 13% find it harder to make ends meet, and one in 10 worry about their finances more than before.
Additional findings include:
- 14% of respondents would like their employers to keep them informed about the benefits available.
- 12% asked for access to useful financial information through their employers.
- 89% of this generation hold a savings account, 38% have a workplace pension, 12% have a private personal pension, 34% have life insurance and 41% have a cash individual savings account (Isa).
- 40% of respondents use internet search engines or social media to research financial information, but one in four (25%) would ask a financial adviser for help if possible.
- 21% would speak to family and friends for financial advice.
Paul Goodwin, director of workplace savings at Aviva, said: “With so much concern about people not saving enough for their retirement, it is really good to see this younger group of men and women actively managing their finances and planning for their future.
“With automatic enrolment being introduced next year, it is essential that organisations focus not just on setting up good quality schemes but also in investing the time to provide employees with the information they need, in an interesting and relevant way.”