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.'
