The concept of retirement may seem like a distant dream for many working millennials, but there is no time like the present when it comes to making preparations for your financial future. However, with our recent study finding that the younger people are, the less confident they are about their retirement plans, despite contributing as much as possible to their pensions, it would seem there is still a long way to go when it comes to creating a financial safety net. 

Research carried out by Navigate Wealth, which questioned more than 1,000 people about their savings habits, revealed that 47% of the Baby Boomer generation (those born between 1946 and 1964) who are still in work are confident that they will be able to afford to retire when they plan to, compared with only 32% of Generation X (those born after 1964, but before the early 1970s), 30% of Xennials (those born between the late 1970s and the early 1980s), 23% of millennials (those born between 1981 and 1996) and 18% of Generation Z (those born from the mid-1990s to the early 2000s). 

Higher savings, lower confidence

Despite this lack of confidence, younger generations are currently saving more money over a longer period than their older counterparts, with millennials’ and Generation Z’s pension contributions on a par with the average across all three older generations. The figures revealed that 44% of millennials and Generation Z are already paying up to 6% of their salary into pension savings, despite starting their careers later due to a higher number attending university. 

In addition, 79% of Millennials and Gen Z started their pension between the ages 18 and 25
- compared with only 49% of the older generations.

After paying their rent or mortgage and household bills, the majority of Gen Z (51%) and
Millennials’ (48%) monthly disposable income goes towards savings, whereas only 38% of
the older generations said saving was a priority.

One of the key takeaways from our survey findings is that younger generations are often criticised for their approach to money management, but they are actually contributing as much to their pension pots as older generations, but crucially starting this saving much earlier in their lives than their older counterparts did. 

Changing priorities 

Across all generations, the most common things on which respondents expect to spend their future pensions are travel, paying off their mortgage and saving for emergencies. However, saving for future care was the second most common choice for millennials and Generation Z. 

Nearly half (46%) of all respondents said they plan to retire before they are 65, which is the current state pension age in the UK (for men born before the 6th of December 1953). Despite having this aim, the millennials and Generation ZS are still not confident that it will happen. 

In order to stand a better chance of achieving the retirement they wish for, younger people should start to explore what investment options may be available to them to get the most out of the money they are putting away each month. 

Find out how you can make the most out of your savings by speaking to Navigate Wealth today. Contact us by calling 0345 340 9690, or send an email to

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