Millennial workers are the biggest savers, research shows
Research from Close Brothers and the Pensions and Lifetime Savings Association (PLSA) has found that millennial workers are saving more money than other generations.
The Lifetime Savings Challenge Report 2017 found that millennials working for companies with over 200 employees are saving an average of nearly £400 more per year in non-pension savings than Generation X workers.
Millennial workers were found to be saving £3,445 per year (£287 per month) in addition to their pension savings. In comparison, workers aged 55 and over were found to be saving £259 each month, whilst 35 to 54-year-olds put away £256 per month.
The top reasons for saving were revealed in the research, with younger workers putting aside money for holidays (34 per cent), purchasing a house (33 per cent), paying debts (25 per cent) and big ticket purchases (13 per cent).
Older workers were found to be placing more priority on securing a good retirement, with 50 per cent of workers aged 55 and over and 34 per cent of 35 to 54-year-olds citing this as their top reason for saving, compared to just 20 per cent of 18 to 34-year-olds.
The research also highlighted the need for more financial guidance for millennials, with 44 per cent of workers in this age group saying that they find the savings process confusing and that they need advice on how to select the best products for saving.
Just 4 per cent of 18 to 34-year-olds have a Lifetime ISA, with around 32 per cent being likely to open one in the future. However, 41 per cent of respondents said that they would be unlikely to open a Lifetime ISA in the future or are unsure of whether they will do so, with 64 per cent saying that they do not have enough information about the product.