Millennial outlook

Pension saving high up on the list of workplace priorities

Workers from the so-called ‘millennial generation’ are putting pension saving high up their list of workplace priorities. Nearly six in ten (57%) people in their first ten years of work considered the quality of their current employer’s pension scheme before deciding whether to take the job, and they will also assess any potential new employer’s pension scheme before moving jobs in the future, according to research from Prudential[1].

Rising living costs
The results found that a confident two in five (38%)[2] believe their retirement saving efforts are on track to help them match the living standards of today’s pensioners when they give up work themselves. However, just over a third (34%) acknowledge rising living costs and accept that the amounts they are saving today simply won’t be enough to support a comfortable retirement.

Millennial women are more realistic than their male colleagues about the challenges of matching the living standards of their retired grandparents in a world where the responsibility for pension provision continues to shift further away from employers and the Government and onto the individual. Just under one in three (32%) of the women surveyed were confident their retirement incomes would match that of older generations, compared with more than half of men (52%).

Making personal sacrifices
Many younger workers are considering making personal sacrifices to help fund a comfortable retirement – 31% say they will consider cutting back on spending for the next ten years to focus on their pension, and 30% are considering a move to a less expensive part of the country.
Despite all the good intentions around saving and planning for their retirement, more than half (54%) of the younger generation of workers admit they are envious of the retirement plans and finances of those who have already given up work or are about to do so.

Comfortable in retirement
The research also found that 30% of younger workers have yet to consider how much income they will need for a comfortable life in retirement, while one in three (33%) say they will consider moving abroad if it helps to secure a more comfortable life when they give up work.
The facts are that given the current economic world is changing, the millennial generation will need to adapt their outlook in line with changes across the economic landscape, and many may be too over-optimistic about the age they can expect to retire if they don’t make sufficient provision early enough.

Source data:
[1] Consumer Intelligence conducted an independent online survey for Prudential between 26 May and 5 June 2017 among 740 UK adults who started work within the last ten years – 98% of whom were aged 18 to 34.
[2] Research conducted by CanvasseOpinion from Experian for Prudential between 28 September 2007 and 25 October 2007. More than 4,000 people were questioned, with 464 people out of that sample retiring in 2008. In subsequent years (2008 to 2016), Research Plus conducted independent research on behalf of Prudential each November among at least 10,000 non-retired adults in the UK, including at least 1,000 planning to retire in the following year.

Content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements or constitute a full and authoritative statement of the law. They should not be relied upon in their entirety and shall not be deemed to be, or constitute advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.For more information please visit