Tue. Nov 19th, 2019

The ‘millennials’ who work forget about saving for retirement


Only one in ten millennials that works
save 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 ESADE researchers.

In Spain, this generation, born between 1981 and 1996 and also known as ‘generation Y’, represents 18.7% of the population. One of the study's authors, Ismael Vallés, commented that in 2008 80% of people with similar ages did not see the need to save or could not do so, while in 2018 it has fallen to 30% of millennials workers.






How are they perceived

Despite the training, the generation believes that it has insufficient financial knowledge

In the light of the study, the millennials they are optimistic by nature and identify more as savers than as consumers, and are aware of the need to save for retirementAlthough, despite being a generation with more training, its financial culture perceives itself as insufficient. "They trust very little in themselves, in banks and in public institutions, in the case of pensions," the authors point out.

Of those who believe that saving is not a problem, 55% have a good economic situation and in terms of those who say they do not save because they can not, the percentage grows to 70%. In comparison with previous studies there has been a positive evolution in the less aware segments regarding the need to save for retirement.

A retiree and an athlete in a park in Barcelona

A retiree and an athlete in a park in Barcelona
(Àlex Garcia)





Assessment

Mistrust in the institutions

According to the authors of the Esade study, Ismael Vallès and Manuel Alfaro, this good evolution “has not translated into an increase in millennials which systematically save for retirement, probably because of their distrust in institutions and the banking sector. ”





In this sense, the director of BanSabadell Vida, General Insurance and Pensions, Claudio Chiesa, has stated that “to convince the millennials of the benefits of saving for retirement it is necessary to develop and implement specific strategies ”.

He stressed the need to "move from an orientation focused on the product and sales to an orientation focused on the needs of each young person, putting the focus on advice for saving throughout life."







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