Are attitudes towards workplace pensions changing?

The millennial generation are putting pensions high up their list of workplace priorities, according to new research from Prudential.

It found that nearly six in 10 people in their first 10 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. 

Nearly 40% of younger workers 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, 34% acknowledge rising living costs – and accept that the amounts they are saving today simply won’t be enough to support a comfortable retirement. 

Women more realistic

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 of the women surveyed were confident their retirement income would match that of older generations, compared with more than half of men.

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 10 years to focus on their pension and 30% are considering a move to a less-expensive part of the country. 

Meanwhile, 29% think a consultation with a financial adviser could help to make sure they understand their savings and investments better. 

Despite all the good intentions around saving and planning for their retirement, more than half 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. 

Analysis

Kirsty Anderson, a retirement expert at Prudential, said: “It’s a welcome surprise to see many younger workers thinking about planning and saving for their retirement. 

"The success of automatic enrolment means that many of them will now be saving into pension schemes for the first time, but what these figures show is that they are going above and beyond the bare minimum required and setting aspirations to match their grandparents’ quality of life when they give up work themselves. 

“But favouring one employer’s pension scheme over another and setting goals for their quality of life in retirement are only the first steps for younger pension savers. 

“Pension saving is for the long-term and the members of the millennial generation who are most likely to be best placed when they retire will be the ones who have saved as much as possible into a pension for as long as possible in their working lives.” 

Expert retirement planning

It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future. 

Our independent financial advisers can help you devise the correct investment and saving strategy to allow you to enjoy the lifestyle you want when you retire.

Click here to find out how we can help.