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.

Have you won £1m in July’s Premium Bonds draw?

A man from Tyne and Wear and a woman from Surrey have become the latest winners of the life-changing £1m Premi...
Have you won £1m in July’s Premium Bonds draw?

Universal Credit job hunting rules restart

From 1 July, anyone claiming Universal Credit will see the return of job-seeking rules. Here’s what you need t...
Universal Credit job hunting rules restart

House prices fall for first time since 2012

Annual house price growth ground to a halt in June ending an eight-year upward march as measured by lender Nat...
House prices fall for first time since 2012

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...