Nearly half (40%) of 18-30 year olds consider their knowledge of pensions to be poor or very poor and three in five (60%) dont know what a workplace pension is according to research by workplace pensions provider NOW: Pensions.
Two in five (42%) justified their pensions ignorance by saying retirement was a long way off. Around one in four (27%) said they find pensions too complex. And nearly three quarters (71%) said they find pension terminology and jargon a barrier to engaging with the subject.
Alarmingly, despite anyone over the age of 22 earning at least £10,000 a year being auto enrolled into a workplace pension, over half (58%) of 18-30 year olds admitted they still don't know what auto enrolment is.
Morten Nilsson, CEO of NOW: Pensions said: "This pensions blind spot amongst younger people should be raising a warning flag for the Government and industry.
"Auto enrolment is going to bring thousands of younger people into workplace pension saving, but if their understanding is poor, there's a real risk that the policy will be undermined.
"The industry needs to work harder to eradicate jargon, making pensions more understandable for young people so the benefits are better understood."
In contrast to their lack of pensions knowledge, only 13% and 19% respectively said they have a poor understanding of savings and credit cards. The only financial services product that young people feel they have less understanding of than pensions, was investments, where 43% said they have a poor or very poor understanding.
