Four in ten millennials have no pension provision, new research from YouGov reveals.
The Bridging the Young Adults Pension Gap report indicates that 44% of 18-34 year olds say they have no pension provision whatsoever compared to around a fifth of 35-54s (22%) and over-55s (20%).
YouGov’s study reveals the extent to which under-35s have a poor knowledge of pensions. Approaching three in ten (27%) say they simply don’t understand enough about them in general and even millennials who have a pension aren’t always clear about what it entails – with 14% who do have one not knowing what type it is.
The report also highlights millennials’ fears when it comes to retirement. Under-35s are pessimistic about the likelihood of the state pension existing in its current form in the future with over a third (35%) believe it will cease to exist at some point due to funding pressures.
Furthermore, approaching six in ten (58%) are concerned about whether they will have enough money to support themselves when they stop working. YouGov’s research finds that over one in six (18%) of these young adults don’t think the state pension will be enough believe but they will have to rely on it regardless.
Holding back money for retirement is down the list of priorities among those in a position to save. Amongst the adult population, putting cash away for retirement (21%) comes below saving for a holiday (32%) and stashing cash for a rainy day (29%). However, it comes ahead of reasons such as buying a property (14%) and paying for house improvements (10%).
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 in to pensions of their own, these figures again suggest a tricky retirement for many.
For retirement to work, there must be balance between young people paying in and old people not being entirely reliant on the state. However, many millennials either simply can’t afford to, while for those that can, financial pressures not necessarily faced by their parents mean that they have other priorities.