The study was carried out in order to learn more about the younger generations and their attitudes and behaviours towards saving for retirement by pension provider Profile Pensions. It discovered that many of those who fall into the millennial age bracket of 23-38 years old feel uninformed when it comes to pensions.
According to the research, 24% of millennials find pension rules “very confusing”, with more than half (53%) wishing their employer would explain pensions and their benefits to them and 23% admitting they weren’t sure if they are on target for retirement saving.
Additionally, 28% of those questioned expressed a lack of confidence with money and financial matters and more than a third (37%) believe they are saving as much as they can, yet still don’t believe it’ll be enough to comfortably retire on. A further 16% do not think they will ever have enough money saved to afford to retire.
However, the number of millennials paying into a pension pot has increased recently because of the introduction of auto-enrolment, which automatically enters qualifying employees into workplace pension schemes unless they choose opt-out. Automatic enrolment has almost doubled the participation of 22-29-year-olds saving into pensions, according to research by the Pensions Policy Institute.
Jordan Mayo, CEO at Profile Pensions, commented that while the majority of young people are quite rightly investing time into understanding what their pensions mean for them, there is still a large proportion of the millennial generation who feel uneducated when it comes to saving for retirement.
“There is a wealth of information on pensions out there, but making sure the right stuff reaches young people in a way that’s engaging and informative, is what we need to work towards together,” he said.