May 26, 2020

Only one in ten millennial workers saves for retirement

Only one in ten millennials who work saves for retirement, although 62'8% think it is important, as confirmed by data from a study promoted by the Age & Life Foundation and conducted by researchers at the Esade school.

These researchers have informed in a press conference that the study has been done only with millennials' workers, representing three quarters of this generation, formed by people born between 1981 and 1997.

The study was carried out by means of three qualitative and quantitative analysis procedures, such as 900 surveys and discussion groups, in which 30 people participated and who dealt with technology, communication and advice on savings.

The study has divided data on retirement savings into five segments: the first is made up of people who do not see the need to save for the future; the second, people who know that they should save and yet cannot do so; the third is made up of those that already consider saving; the fourth, those who have already done it in the past and do it when they can, and the last the millennials that have been saving for six months.

One of the study's authors, Ismael Vallés, commented that "in 2008, 80% of these people were between segment 1 and 2", that is, those who do not see the need to save or cannot do so, while in 2018 these two segments only gathered 30% of the millennial workers. "

Despite this favorable progression, Vallés warns that 50% of the people who are located in the first segment and 70% of those in the second are in a "favorable situation to save, and even so, it doesn't. "

The study, in addition to providing these data, has also determined a pattern of behavior and personality of millennial workers when they have to deal with financial issues and, in general, are more savers than consumers.

According to Vallés and another of the study's authors, Manel Alfaro, "the behavior and attitude towards saving is not very different from the rest of the population", since "they prefer not to have losses to risk making money, they usually buy the product that most people acquire and look more in the short term. "

However, the authors argue that there are some differences with the rest of the population: for example, optimism based on the "short term" and that, despite being a very well-trained generation, in financial efforts "they trust very little in themselves, in banks and in public institutions, in the case of pensions. "

This precaution towards the banks is because they feel that they only "want to sell them a product", although what they want and what values ​​60'8% of this generation is that there is someone who "advises and shows them empathy", Because savings management is an issue that they consider "complex."

Another aspect discovered in the study is that, contrary to what is believed of this generation, technology is not a key factor in making economic decisions, that is, they use technology to inform themselves but do not take it into account to decide what to do. .

In this sense, Alfaro affirms that "the process of buying bank products that follow millennials is informed through technology, go to the bank office to receive advice, but not to decide there, but they want to choose without any interference and, finally, they want hiring to be easy, simple and automatic. "

The study has been funded by the Life, Pensions and General Insurance section of Banc Sabadell, whose director Cluadio Chiesa has stated that "they are very valuable data and should be taken into account."

. (tagsToTranslate) Only (t) millennials (t) workers (t) saves (t) retirement

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