A new report from YouGov has shown that a large proportion of the UK’s millennials have no pensions savings, with many saying they simply don’t understand enough about pensions to make an informed decision.
The Bridging the Young Adults Pension Gap report found that 44 per cent of 18-34 year olds admitted to having no pension savings at all – compared to 22 per cent of of 35-54 year olds and 20 per cent of over-55s.
A lack of knowledge is clearly a barrier for many, with three in ten under-35s (27 per cent) stating they don’t have sufficient knowledge of pensions in general.
Indeed, even millennials that do have a pension admit that they do not have a clear picture of what is involved – with 14 per cent not able to confirm which type they hold.
It’s a picture that is bringing anxiety to the age group, with well over half (58 per cent) concerned about their ability to support themselves when they stop working.
The state pension is not seen as the answer by over a third of 18-34 year olds, with 35 per cent agreeing with the statement: “If government spending for pensions continues as it is, the state pension will cease to exist at some point due to funding pressures.”
The place of pensions among the priorities of the UK population was also revealed by the report – with putting cash away for retirement a top consideration for 21 per cent of adults, compared to saving for a holiday (32 per cent), ‘stashing case for a rainy day’ (29 per cent), buying a property (14 per cent) and saving for house improvements (14 per cent).
Kate Fillery, a research executive for YouGov, said: “With a large ageing population eating into the government’s ability to provide a state pension, and many young people unwilling or unable to feed into pensions of their own, these figures again suggest a tricky retirement for many.”