The average Millennial is able to save just £103 a month, or £1,236 a year, research from giffgaff money can reveal. This means they’re projected to work until they’re 77 years old before they have enough money to enjoy retirement*.
The research is part of a recent survey into Millennial spending habits and their ability to save money – which also found that almost half of Millennials (49%) are unable to pay into a pension scheme at all.
Respondents who could not contribute to a pension were only able to save an average of £40 a month.
Almost a third (31%) of Millennials have a workplace pension but are only able to pay in the minimum percentage of their wage (which is individually determined by employers).
Richard Apletree, Managing Director at giffgaff money, commented on the findings:
“It’s a shame to see the financial difficulties of younger workers not only affecting their ability save for the near future, but also forcing them to work long into their retirement years.”
“While some younger people are able to make the minimum contributions to their workplace pension, greater investments often reap generous benefits. By hindering their ability to build a solid foundation, the long-term retirement goals of young people can suffer immediate setbacks.”
giffgaff money’s research follows a report from The Resolution Foundation that found a 10% pay gap between young people’s earnings today and those in 2009.
Those aged 65-74 reportedly hold more wealth than the entire population aged under 45, with The Resolution Foundation stating: “This generational concentration of wealth is being driven in no small part by the closure of access to generous defined-benefit occupational pension schemes to younger workers.”