In a recent study, Prudential has found that more than half of millennials want to be educated about how to best save for their retirement. Reassuringly, the survey found that nearly 70% of workers under 35 are now saving into a pension, but experts warn many won’t be saving enough.
Stuart Price, Partner and Actuary at Quantum Advisory, says: “The results of the study are actually encouraging as it shows youngsters are taking in an interest in their long-term financial wellbeing. However, unless there is simple and concise information actively available to them, then of course pensions are going to be confusing and many won’t realise that they should be saving more.
“The planned introduction of the Pensions Dashboard, hopefully next year, aims to provide a simplified way for individuals to see all their pension savings in one place, give them an idea of their likely income when they retire and should go a long way to addressing much of the perplexity. I do think though that more needs to be done to educate the younger generation entering the workforce – particularly as they have expressed a desire for it.
“I firmly believe that explaining about pensions should be taught in school – from secondary through to college and university. Employers should also take responsibility and teach their staff about the pension options available to them, and how much they should be saving.
“Knowledge is key to securing a comfortable future as, if I was a millennial, I certainly wouldn’t be banking on the State Pension being around in its current form when I eventually came to retire in 40 or so years’ time.”
Stuart Price, is Partner and Actuary at Quantum Advisory, which has offices in Amersham, Birmingham, Bristol, Cardiff, and London. Quantum provides pension and employee benefits services to employers, scheme trustees and members.