Millennials less cash-strapped than thought

MillennialWhether viewed as cappuccino-buying money wasters or cash-strapped buyers of iPhones, millennials often stand accused of not saving enough money.

However, research shows that millennial workers are saving more per month than other generations.

A survey of employers and employees in the UK found millennials were putting aside an average of nearly £400 (€453) per year more in non-pension savings than their Generation X counterparts.

The research – published by Close Brothers and the Pensions and Lifetime Savings Association – found millennial workers were saving an average of £3,445 per year outside of their pensions compared to £3,073 by those aged 35-54.

The ‘Lifetime savings challenge report 2017’ looked at the views of workers in companies with more than 200 employees and found that the £3,445 per year that millennials were saving on top of their pensions (or £287 per month) was more than those aged 55 and over (£259) and people aged 35-54 years old (£256).

Jeanette Makings, head of financial education at Close Brothers, said: “Millennials are often a prime media target when looking at poor savings habits, but as this research shows despite being the workplace generation that earns the least, they save the most.”

She added that the generation of most concern is those aged 35-54 who, “without the cushion of a DB [defined bendfit] pension like the generation before them”, and without the time to build up their long-term savings, like millennials, there is the increased risk of them being unprepared for retirement.

The report also said that just over 44% of millennials said the savings landscape was confusing and that they needed guidance.

The data is based on surveys conducted amongst 1,000 employers with 200 or more employees and 2,009 employees from companies with 200 or more employees.

©2017 funds europe