Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2013
08

'Generation Y' facing tough retirement, poll finds

Open-access content Tuesday 27th August 2013 — updated 5.13pm, Wednesday 29th April 2020

One third of people expect those who are now young adults will struggle to save enough for retirement, according to a poll

A survey by NOW Pensions found 46% of the so-called 'Generation Y'  ¬- those aged between 18 and 31 ¬-  do not save regularly, and half expect to be worse off than their parents in retirement due to rising living costs and a less generous state pension . 

Two thirds of those questioned expected the baby-boom generation ¬- those aged between 51 and 71 ¬- to be the last able to retire with sufficient savings. 

Nearly a third (29%) believed those born today would eventually struggle the most with retirement.

The survey found 68% of Generation Y members blamed rising living costs and lower state pensions for their plight, while 38% thought increased longevity would put a strain on their retirement income. More than a quarter believed the burden of student debt will hold them back.

Despite this, the two generations have contradictory views on their long-term financial future, with only 37% of generation Y saying they are worried about funding their retirement, compared to 45% of baby-boomers. 

Generation Y members expect to fund the shortfall in their retirement savings by saving or investing more (56%), working longer (55%), making increased pension contributions (31%) or working part time when retired (30%).

NOW Pensions chief executive Morten Nilsson said: 'Sky-high rents, the rising cost of living and stagnant wages have all made saving for the future near mission impossible for Generation Y. 

'Automatic enrolment into workplace pensions will help those that are struggling to save, get into the savings habit but it's important that employers and pension providers drive home the importance of staying in the scheme.'

This article appeared in our August 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Firefighters vote to strike over retirement age hike

Firefighters have voted to strike over the government’s proposed pension reforms, which would increase the normal pension age from 55 to 60.
Friday 30th August 2013
Open-access content

Retirees will lose out from government pensions reforms

The government’s reforms to the state pension could make millions of people worse off, the Trades Union Congress has warned.
Wednesday 21st August 2013
Open-access content

Number planning to stay in work tops 5 million

One in seven people have no plans to retire and increasing numbers of women have no pension, research by Barings Asset Management has found.
Tuesday 20th August 2013
Open-access content

Fewer people retiring early due to pension changes

The growth of defined contribution pension schemes has made early retirement less attractive in the UK, giving it one of the EU’s higher rates of employment of older people, a report by the International longevity Centre has found.
Wednesday 4th September 2013
Open-access content

Retirement 'daunting' for public service workers

More than two in five public sector workers are daunted about their finances after retirement, a survey undertaken by the Teachers Assurance financial education firm has found.
Thursday 5th September 2013
Open-access content

DB scheme closures likely after contracting-out ends

Closure of defined benefit pension schemes is the main option being considered by pension funds to deal with the end of contracting-out in 2016, research by Aon Hewitt has found.
Friday 16th August 2013
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from August 2013

15% pension contributions 'needed for decent retirement'

Individuals should be saving around 15% of their annual salary into their defined contribution pension over 40 years if they are to have an adequate standard of living in retirement, Schroders has claimed.
Thursday 12th September 2013
Open-access content
2

Further Solvency II delays now possible, KPMG warns

KPMG has warned that the implementation of Solvency II is likely to be further delayed after a key European Parliament session to approve proposed amendments to the regulations was put back until next year.
Wednesday 4th September 2013
Open-access content
2

Young people 'doubting value of pensions'

Younger people are losing faith in the value of pensions, research by Baring Asset Management has indicated.
Tuesday 3rd September 2013
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 08

15% pension contributions 'needed for decent retirement'

Individuals should be saving around 15% of their annual salary into their defined contribution pension over 40 years if they are to have an adequate standard of living in retirement, Schroders has claimed.
Thursday 12th September 2013
Open-access content
2

Further Solvency II delays now possible, KPMG warns

KPMG has warned that the implementation of Solvency II is likely to be further delayed after a key European Parliament session to approve proposed amendments to the regulations was put back until next year.
Wednesday 4th September 2013
Open-access content
2

Young people 'doubting value of pensions'

Younger people are losing faith in the value of pensions, research by Baring Asset Management has indicated.
Tuesday 3rd September 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ