Aegon, with the Aegon UK consumer and customer panel, recently conducted a survey on 685 adults - 380 with workplace pensions - which found that 58% of millennial respondents think it is their employer’s responsibility to help them plan for retirement.  In addition, it was found that 23% of millennial respondents had no idea how much their employer is paying into their occupational pension and 41% with workplace pensions said they were not aware that they get tax relief on their workplace pension contributions.

The research also found that 51% of respondents aged between 18 and 34 with a workplace pension are not actively encouraged by their employer to check their occupational pension pot.

However, of the 72% of people with workplace pensions, millennials were the most likely to have picked their own investment fund – in fact, 30% selected their own investment fund rather than staying in their scheme’s default option.

Kate Smith, Head of Pensions, Aegon – stated:   

“Choosing their own investment funds is a promising sign that the younger generation is open to taking responsibility for their retirement planning and making active decisions. It also suggests young people are taking a greater interest in what their savings are invested in, and there’s evidence to suggest they are more likely to opt for socially responsible investment strategies. The onset of pension digitization also makes it easier to switch between funds, which is likely to appeal to a more tech-savvy generation. We hope this trend towards increased investment engagement continues for generations to come.”

The survey also found that millennials are looking to their employers for help with their retirement planning.

Kate Smith commented:

“..............We’d like to see more employers encouraging their younger employees to get into the habit of saving through their workplace pension.

While auto-enrolment gets people out of the starting blocks, it’s only a small part of the solution to saving for retirement. Employees should be encouraged to build on this to take an active role to grow their retirement savings.”