39% of younger workers prioritise saving

More than a third (39%) of respondents aged 18-24 years old prioritise saving, with this group having saved the greatest percentage of their salary (10.9%) in the last year, according to research by Towers Watson.

Fiona Matthews

Its survey of 5,004 employees between the ages of 18 and 65 also found that 44% of 25-34 year old respondents prioritise saving, dropping to 37% of 35-44 year olds. 

The research also found:

  • Three-quarters (75%) of respondents aged 18-34 have little or no awareness of the pension reforms, which came into effect in April 2015.
  • Just 14% of 18-24 year-old respondents have talked about pensions or long-term savings over the last 12 months, compared to 35% of respondents aged 35-44 and 30% of those aged 25-34.
  • More than half (59%) of respondents aged 55-64 years old and 42% of those aged 45-54 years old have discussed pensions and long-term savings in the last year.

Fiona Matthews (pictured), managing director at Towers Watson Master Trust, said: “Our findings show that there is a generation of young adults who are prepared to save more of their salary and plan for the future. But there are major challenges ahead.

“The vast majority of young adults are in the dark about pension reforms and how they might be affected. But our survey shows they want to talk about pensions and learn more.

“There is a great opportunity for pensions experts and employers to educate younger workers on what options are available to them to save for retirement. In particular, they need firm guidance and support from their employers on pensions and what the new reforms mean for them, so they can start planning now.

“Employers should lead the way and support younger workers in planning for a secure and prosperous retirement.”