Millennials leading the way to record levels of pension participation

Official data from the DWP* reports that participation in workplace pensions has reached record levels at 78% of eligible employees**.

This is up from a low of 55% in 2012.

Leading the way has been a growth in saving by the millennials, those under the age of 30. Participation of this population has more than doubled from 35% in 2012 to 72% today. No other age group matches this level of growth.

 

2012

2016

Age 22-29

35%

72%

Age 30-39

54%

77%

Age 40-49

62%

81%

Age 50-State pension age

62%

80%

Overall

55%

78%

Commenting on the data, Alistair McQueen, Head of Savings & Retirement at Aviva said:

“Today’s millennials face financial pressures like never before. House prices have sky-rocketed, a “job-for-life” is a thing of the past, and it is not uncommon to begin your career with thousands of pounds of student debt.

“With these challenges in mind, the millennials willingness and ability to save for their long-term future is to be praised and celebrated.

“Aviva’s Family Finance Report*** found that millennials want to prioritise long-term saving before short-term spending and they are putting their money where their mouth is. No longer can people claim that today’s millennials are living just for today.” 

Ends

Media Enquiries:

Fiona Whytock, Senior Media Relations Manager, T: +44 (0)7800 692299 E: Fiona.whytock@aviva.com  

Notes to editors:

  • Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
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https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/618843/workplace-pension-participation-and-saving-trends-2006-2016.pdf
** Eligible employees: This analysis is limited to those who meet the automatic enrolment age and earnings criteria each year, including employees already a member of a workplace pension scheme.
*** Aviva Family Finance Report Summer 2016.pdf