Only 26% of Millennials seek financial advice on retirement

Only 26% of Millennials seek financial advice on retirement

Most under-35s are saving into a pension but just 26 per cent say they see a financial adviser regularly, according to research from Prudential.

The research showed 69 per cent of under-35s were saving into a workplace or personal pension but 53 per cent of them felt their employers should explain pensions and benefits to them and 24 per cent found pensions confusing.

It showed 66 per cent had signed up for workplace schemes through auto-enrolment but many knew they were not saving enough, with 23 per cent saying their pension contributions were not high enough. 

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According to the research, 24 per cent were not yet saving into a pension and 27 per cent did not believe pensions were relevant to their generation.

Vince Smith-Hughes, pensions expert at Prudential said: "Millennials are as responsible as other generations when it comes to pensions and the talk about Generation Snowflake feeling entitled to an easy life is not true.

"They are often under a lot of pressure to get on the housing ladder and pay off their student loans at the same time as trying to prioritise pension savings.

"Rules can be confusing, especially when you are early in to your career which is why we advise most savers to seek financial advice when possible. Employers can help to ensure they provide information and support around their workplace scheme."

Prudential’s research also found 37 per cent thought they were saving as much as they could but still did not think it was enough for a comfortable retirement, with 16 per cent thinking they would never be able to afford retirement.

Kim Lerche-Thomsen, founder and chief executive of Primetime Retirement, said: "That the younger generation is concerned and confused is not entirely unsurprising but unfortunately, this does not necessarily get better as they age.  

"Our research shows that this lack of knowledge continues in later life, with our research showing that 27 per cent of over-55s want more resources to be made available to help people make informed decisions that will impact their income in retirement.

"Clearly, supporting millennials and ensuring they are engaged with pensions at an early age is key to ensuring future generations enjoy a financially comfortable retirement. With more and more people going into retirement with insufficient savings and Prudential’s research suggesting that some people may only have the state pension to rely on, we are facing a looming pensions crisis in the UK.

"This is why it is vital that we work together as an industry now to tackle the issues head on and raise awareness of the importance of planning for retirement from an early age."

Scott Gallacher, financial planner at Rowley Turton said an overhaul of auto-enrollment would encourage under-35s to put money into pensions.

He said: "People look for reasons they haven't sorted out a pension, for example they say they're too complicated, or too expensive. But these same people manage to sort out the latest iPhone or Samsung.