Our Generation why? survey, launched in 2014, was designed to help us gain a better understanding of generational attitudes and perspectives towards saving and money matters, and how an individual’s affluence influences their thinking. The results identified where the ‘dips’ were on an individual’s journey to retirement.
"Employers are realising the importance of financial education across all age groups as midlifers will soon become the retirees of the future."
We received just over 500 responses to the survey. Headline figures are weighted average across various salary bands, whereas the individual tables look at the different salary bands in isolation, with results merged into replies shown.
In 2015’s survey we looked to see how these attitudes had changed. We continued to target different age and affluence groups; 18-29, 30-49 and 50+, each within various earnings brackets; below £20,000, between £20,000 to £39,999, between £40,000 and £74,999 and above £75,000.
The same questions were asked, but with the important addition of ’Are you aware of the Budget changes (from April 2015)?’ We also included ‘saving for a wedding’ as an option to choose from when looking at financial priorities.
Pension freedoms have given individuals more flexibility than ever before with regards to retirement. Although people still need to understand why they should stay in a plan, we have found that more focus now needs to be given to education around how to access their money and when they want to retire. Having new options is an encouraging step forward but it is essential that retirees have help in order to make informed decisions.
We still believe in our defined contribution (DC) formula which is based on time frame, how much is saved (along with investment performance) and how to shape and access pension savings in the best way. Our communications reinforce this philosophy, targeting the needs of different cohorts. Age remains a significant factor (along with affluence) as the needs of a 25 year old will be different from a 55 year old.