Marvin OnumonuMillennials are the generation least engaged with pensions, according to research from InvestEngine.
Over half (51%) of millennials, born 1981 to 1996, said they rarely think about their pension, a higher proportion than Gen X at 38% and Gen Z at 43%.
Just over a third (35%) of millennials said they think their pension will be enough for retirement.
Additionally, 37% of millennials did not understand the details of their pension, including costs and fees.
Almost half (45%) said they did not know they were paying fees on their workplace pension.
This compared to 34% of Gen X and 41% of Gen Z.
More than half (57%) of millennials said they did not know what fees they were paying, and 30% thought a higher fee meant a better pension fund or provider.
This was more than double the figure for Gen X at 13%.
Fees on workplace pensions are currently capped at 0.75% a year, with 29% of millennials saying they were aware of the cap.
Andrew Prosser, head of investments at InvestEngine, said: “We know that on average most people aren’t saving enough for their retirement, but our research shows that it is millennials that are the most in the dark when it comes to their pension fund – more so than older Gen X and younger Gen Z in many respects.
“As the generation of auto-enrolment, millennials may simply have had fewer reasons to think about and engage with their pension, but this has led to some alarming findings.
“Most concerning is the lack of understanding around the long-term impact that seemingly low pension fees can have on their retirement savings. Even small percentages add up to life-changing sums over time.”
Prosser added: “People should be able to invest for a comfortable retirement without high costs holding them back, which is why we’ve removed our platform fees for SIPPs, ensuring every pound invested works harder for their future.”
