Millennials are putting aside a bigger part of their income for retirement than the next oldest generation, according to a poll by deVere Group.
More than 660 of deVere Group’s new clients across UK, Europe, Africa, Asia and the US last year participated in the survey. The poll found millenials (24 to 38 years old) who started seeking financial advice from deVere last year saved on average 19 per cent of their income for their retirement.
Those in Generation X (39 to 53-year-olds) put aside 16 per cent on average of their income for retirement. Of all the generations, Baby Boomers (54 to 74 years old) put the most income aside- 35 per cent.
deVere Group founder and chief executive Nigel Green comments: “The results of the saving survey are both encouraging and alarming.
“It is encouraging that millennials – often falsely stereotyped for their sense of entitlement and for being content to pay for overpriced coffees and smashed avocado on toast – seem to be better at saving and more fiscally responsible than many would have thought.
“Despite their reputation for purely living for today, the poll shows that they are saving for their retirement pretty impressively. Putting aside nearly a fifth of their income already is highly commendable, especially when many can be expected not to be yet at the peak of their earning power.
“What is alarming, however, is that Gen X… workers are not saving nearly enough in order to be able to have a comparable lifestyle in retirement. And by the virtue of being older, they have less time to build wealth before leaving work.
Green cites increasing life expectancy, a looming health and social care crisis and growing deficits in company pension schemes as reasons to be concerned with the low levels of pension saving.
The chief executive goes on to say: “We need to revitalise the savings culture of Gen X especially. Otherwise many of today’s working population are going to reach retirement and find they have to downgrade their lifestyle and/or continue working longer than they had expected and hoped, due to a lack of savings.”