EXCLUSIVE: Only 9% of younger employees prioritise retirement savings


EXCLUSIVE: Less than one in 10 (9%) of employees aged between 18 and 35 rank retirement savings as their number one priority, despite 66% of employers believing that pension schemes are a priority for all staff, according to research by Smarterly.

The survey of 1,248 employees and 508 HR professionals in the UK also found that 97% of employee respondents between 18 and 35 are concerned about one or more aspects of their financial situation; 25%, for example, are worried about how to save consistently, while a further 25% are anxious about how to afford purchasing a house.

Almost four-fifths (78%) of HR leaders aged 55 or over believe pension schemes are a priority for employees when it comes to financial wellbeing in the workplace, compared with 62% of HR professionals aged between 25 and 34 and 46% of those between 16 and 24 years old.

Steve Watson (pictured), head of proposition at Smarterly, said: “[The] individual priorities of those setting the employee benefits agenda seem to impact any financial wellbeing support offered to employees, with baby boomer decision-makers less convinced about the importance of financial wellbeing than their younger counterparts.

“Researching employers has been fascinating; 82% of under 25 decision-makers think it’s the employer’s role to support employee financial wellbeing, compared with only 35% of 55-year-old decision-makers.

“Younger employees today need savings to help them pay for life events in the more immediate future, such as getting married or buying a house, and they also may need to be able to put money aside for the medium-term to help assist with future caring responsibilities.”