Marvin OnumonuStandard Life, part of Phoenix Group, found that Millennials were the generation most worried about retirement savings, despite having the most time to save.
Around 66% were concerned they were not saving enough, compared to 60% of Generation Z, 57% of Generation X, and 24% of those aged 60 and above.
The Retirement Voice research also highlighted short-term financial anxieties among millennials, including high interest rates and inflation.
About 53% of Millennials were concerned about interest rates, compared to 48% of Generation Z, 29% of Generation X, and 14% of Baby Boomers.
Inflation worries Millennials and Gen Z the most, at 73%, compared to 67% of Gen X and 56% of Baby Boomers.
Millennials, often in their 30s, face financial pressures from buying homes and starting families.
Research found that starting work at 22 with a £25,000 salary and paying auto-enrolment contributions could build a £210,000 retirement fund by 68.
Adding just 2% more at 30, 35, or 40 could increase savings by £42,000, £36,000, and £30,000, respectively, adjusted for inflation.
Mike Ambery, retirement savings director at Standard Life, said: “Millennials are often thought of as an anxious generation, with their early lives shaped by immense economic and geo-political change, and our research highlights this nervousness.
“Against the backdrop of tentative recovery from the cost-of-living crisis, many Millennials are currently balancing mortgage repayments, childcare costs and everyday expenses, and planning for later life is perhaps taking a back seat.”
Ambery added: “There’s some good news for the long-term, however – firstly, it seems Millennials are aware that they are under-saving and so could be more inclined to act, when possible.
“They are also likely to have been auto-enrolled into a pension from an earlier age than their predecessors Generation X, meaning they’re more likely to have at least a basic level of pension savings to build on.”
He said: “Then, they have the gift of time – the oldest Millennials are still over 20 years from state pensions age and could boost their pot between now and retirement.
“Raising pension contributions can involve a trade-off between short and long-term financial pressures, but it’s incredibly tax efficient and, thanks to the power of compound investment growth, even a small increase can build up and make a huge difference.”
He added: “There’s another reason for Millennials to be optimistic – they’re set to become the wealthiest generation in history thanks to the Great Wealth Transfer, in which Baby Boomers will hand down £trillions worth of assets across the world.
“This won’t benefit everyone equally, however, and it’s important people make sure they provide for their financial futures!”
