Attitude of younger generation towards saving showing vast improvement
The most enthusiastic savers in the UK are aged from 18 to 34, having saved the greatest percentage of their salary (10.9%) in the last year. The surprising details of professionals’ saving habits have been revealed in new research from LifeSight, Towers Watson’s UK DC master trust.
The attitudes of the youngest workplace generation towards finance have undergone a dramatic transformation, with 39% of 18-24 year olds and 44% of 25-34 year olds prioritising saving.
Comparatively, of the preceding generation, aged 35-44, only 37% prioritise saving – despite some in this age group being only ten years out from being able to draw their pension under the new freedoms.
However, few Millenials understand savings such as pensions, with only 12% saying they feel informed about retirement savings – and 75% of 18-34 year olds having little or no awareness of the recent pension reforms.
Fiona Matthews, managing director Towers Watson Master Trust, stated: “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.”