Millennials think about their pensions EVEN LESS than Gen Z, despite being closer to retirement
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Millennials are the generation that thinks about their pension least - despite being closer to retirement than Generation Z.
More than half of those born between 1981 and 1996 say they rarely think about their pension, according to data from Investengine.
That compares to 43 per cent of adults in Gen Z, born between 1997 and 2012, and 38 per cent of Generation X, born between 1965 and 1980.
Millennials' reluctance may be a case of burying their head in the sand, as only 35 per cent think that their pension will be enough to get them through retirement.
It may also be that millennials have more immediate financial concerns, such as getting on the housing ladder or raising children.
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Andrew Prosser, head of investments at Investengine, said: 'We know that on average most people aren't saving enough for their retirement.
'But our research shows that it is millennials that are the most in the dark when it comes to their pension fund – more so than older Gen X and younger Gen Z in many respects.'
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Millennials also in the dark about pension fees
Millennials are also the least knowledgeable about their pensions and the charges they may be paying to their provider, according to the research.
Some 45 per cent said they weren't aware that they were paying fees on their workplace pension, compared with just 34 per cent of Gen X and 41 per cent of Gen Z.
A large number of millennials, 37 per cent, said they don't understand their pension at all.
Just under a third believed that higher pension fees are an indicator of a higher quality pension fund, meaning that many may find themselves paying over the odds.
Workplace pension fund fees are capped at 0.75 per cent per year.
Recent figures from Interactive Investor reveal that 83 per cent of the overall population don't know what fees they are paying on their pension.
Craig Rickman, pensions expert at Interactive Investor, explains: 'Every pound you pay in fees that doesn't translate to a better outcome, is a pound less for you to enjoy in your golden years.
'The tricky part for savers is that, while portability of pensions means that you can switch to somewhere else that provides better value, many don't know how much their current providers charge.'
However, high fees, even capped, could still eat into a pension fund well into the thousands of pounds.
> Take control of your pension with a Self-invested personal pension (Sipp)
'My head is in the sand'
Sarah, 38, a teaching assistant from Bristol, told This is Money that her pension simply isn't her priority.
She said: 'I hardly engage with my pension at all.
'I've got a pretty busy lifestyle with family, hobbies and work - it just doesn't take priority.
'I'll also admit that my head is in the sand because it feels a long way off before I'll need it.'
She added: 'In my previous job, I got sent quarterly updates through the post, I would open it up and get easily overwhelmed by all the jargon and figures so I'd skim read it, then file it away with all the others.
'In my current job there's a pension website where you can see what's happening and choose to make it higher risk, but I've never logged on to it.'
Figures from Scottish Widows shows that 38 per cent of people's pension pots aren't on track to adequately fund their retirement, with many only beginning to engage with their retirement funds later in life.
Sarah said: 'I guess as I get nearer to drawing my pension I will need to give it much more attention. I will probably reach an age where I really want to know how much longer I need to work for, and that's when I'll start really needing to figure it all out.
'Hopefully my ignorance won't come back to bite me. I'm hoping that paying in every month will be enough, and I'm putting my trust in the system that I'll get what I'm owed when the time comes... although maybe that's naive.'
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