By Daniel Hunter
According to recent research from Standard Life, over half (54%) of young British employees are keen to learn more about the Government’s new auto-enrolment initiative.
The research reveals that ‘Generation Y’ is far more interested in learning about their pension options than those aged 35 and above - a third (31%) of employees aged 35 and over say they are interested in finding out more.
The research also demonstrates that while auto-enrolment is definitely a step in the right direction, more needs to be done to encourage people of all ages to think more about the importance of future planning and the opportunity provided by workplace pensions. Almost a quarter of British employees aged 35-44 (23%) stated that they were ‘not at all interested’ in finding out more about auto-enrolment, compared to just over one in ten (13%) of 18-24 year olds.
Previous research by Standard Life revealed that the age 30 is a pivotal point when it comes to long-term financial planning. Standard Life’s ‘Keep on Nudging’ report demonstrated that many people in their mid-30s believed they had already “missed the boat”, while those under 30 felt they ‘had all the time in the world’.
“It’s encouraging that the younger generation in Britain wants to know more about auto-enrolment," Ann Flynn, Head of Workplace Marketing at Standard Life, said.
"The whole driver behind the initiative is to make it easier for people to save for the long-term and that seems to be landing well with Generation Y.
“Auto-enrolment is a great opportunity for employees who are not currently in a pension scheme to start saving for a secure future. And one of the main benefits is your employer has to contribute to your pension and any personal contributions you make will usually benefit from a top up from the taxman too. This can make a substantial difference to your pension savings.
“Unfortunately the harsh reality is that the State Pension is unlikely to be enough to support us in retirement so we have to start taking responsibility, and the sooner we start the better.”
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