We are often asked the impact of the pension reforms on Millenials and whether this new forced personal responsibility for retirement income will mean that younger workers will start to save more for retirement. In our latest report, Embracing Change: Consumer Views of Retirement, we found some pretty stark differences in how Millenials view the retirement changes and how they plan to fund their retirement compared with ‘Core Accumulators’. We’ve summarised some of the more interesting findings below.
Let’s get the definitions out of the way. We have defined Millenials as those aged 25-35 and Core Accumulators as those aged 55-65. Core Accumulators get their name from the fact that they are in the core phase of wealth accumulation in the run up to retirement.
And some context is useful too… More than half of Millenials say they don’t have a pension – and only 22% say they have a workplace DC plan. This is based on perception – rather than reality. An important distinction. Many more are likely enrolled in a DC plan through auto-enrolment but aren’t aware of or have forgotten about the plan.
