Young workers are saving more per month than other generations, putting aside an average £400 a year more in non-pension savings than those aged 35-54. The Lifetime Savings Challenge Report 2017, published by Close Brothers and the Pensions and Lifetime Savings Association (PLSA), illustrates how saving priorities shift over time, with those in the youngest age bracket (18-34) focusing on saving for short-term events such as holidays, big ticket purchases or paying down debt.
Not surprisingly, saving to secure a desired lifestyle in retirement is a priority for only 20% of this age group, whereas it tops the list of priorities for those aged 35-54 and those aged 55 and over. However, Millennials find the savings landscape confusing, for example, only 4% of 18-34 year olds have a Lifetime ISA, despite the fact that this vehicle was created with them in mind.
Nigel Peaple, deputy director for defined contribution, lifetime savings and research at the PLSA, said:
‘In contrast to the usual stereotype of millennials’ savings habits the Lifetime Savings Challenge Report 2017 reveals a very different picture, with these workers putting away more than any other generation. Indeed, PLSA research conducted last year also found this age group had a desire to save, with 51% of respondents telling us they get more satisfaction out of saving money than spending it.’
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. The research was carried out on behalf of Close Brothers Asset Management by Opinium between the dates of 16 and 22 August 2017.