We hear lots of challenges from employers, providers and the market about getting younger people interested in saving and planning for their future.
But both our own experience, the recent CIPD/ Close Brothers research on workplace financial wellbeing and this research gives the opposite view.
It clearly shows that younger people do want to save and many are saving. Their top saving goals are:
- 'Rainy day' money (38%)
- Holiday (29%)
- Deposit for first property (26%)
- Retirement (19%)
- White goods and furniture (16%)
This list is heartening indeed, as it shows short, medium and long term savings goals and that millennials are also really planning their finances by building up a 'financial shock' fund.
Engaging younger workers with their workplace savings choices and other benefits shouldn't be difficult; they want to save, employers want them to save, the government wants them to save and saving will improve their financial wellbeing.
So for any organisation struggling to engage younger workers with their savings plans, it's not due to lack of interest; they may just need a little guidance and support to know how, how much and into where.
For the record, millennials' top five savings goals were ‘rainy day' money (38%), holiday (29%), deposit for first property (26%), retirement (19%) and white goods and furniture (16%). The odd thing is that the pretty much universally warm welcome LISA received from the millennials we spoke to was at odds with the reactions we see from potential providers, distributors, and wealth managers. Among the industry, we seem to have a ‘marmite' attitude to LISA, with some shunning it as a political stunt that they will have nothing to do with and others declaring they will launch one on 6 April, or as soon after as systems and compliance allow them out of the starting gate.