You are here: Home - Retirement - Retirement planning - News -

Millennials’ spending to cost them at retirement

Written by:
Millennial spending is currently £1,000 a month ahead of the state pension and yet few are engaged with pensions.

New research from Profile Pensions shows millennials spend an average of £1,770 a month. The State Pension would cover less than half – only 41% – of current expenses.

A Deloitte study showed millennials tend to job-hop, with half planning to leave their jobs within two years of joining. While they benefit from auto-enrolment, frequent job changes, alongside periods of freelance work and entrepreneurship do not help build a good pension pot.

The research shows that millennials tend to have more takeaways, spending an average of £110 a month – 17% of the monthly full state pension. Equally, they spend an average of £211 a month on nights out – equivalent to 32% of the state pension.

Profile Pensions suggested millennials need to take advantage of workplace pension schemes, as well as cutting back on spending. It said halving the monthly socialising budget could help them put an extra £100 into a private pension.

Michelle Gribbin, chief investment officer at Profile Pensions, said: “Although monthly expenses can vary from generation to generation, we wanted to showcase to those still climbing the career ladder the necessity of preparing for their financial future early, by highlighting just how much of their current lifestyles they would have to change in order to live comfortably in retirement.

“Although it can be easy to glance over small indulgences from time to time, it does all add up, and preparing for retirement is key for us all, no matter our age. In fact, as our results show, the earlier you can start saving, the more comfortable your retirement can be.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Premium Bonds winner cheques to be scrapped: Act now

NS&I will be phasing out cheques paid to winners from December, instead paying prizes direct to customers’...
Premium Bonds winner cheques to be scrapped: Act now

NatWest launches regular savings account paying 3% interest

NatWest has launched a Digital Regular Saver offering 3% in a bid to get customers in the habit of putting mon...
NatWest launches regular savings account paying 3% interest

Furloughed and self-employed receive £50bn in government support

The government has handed out nearly £40bn to cover furloughed staff wages while grants for the self-employed...
Furloughed and self-employed receive £50bn in government support

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Most workers paid less than a decade ago – but bankers’ salaries are at a record high

Average salaries are £17 a week lower than they were a decade ago, however a small number of industries have...