Fresh research has found the average millennial can only manage to save around £103 a month
Fresh research has found the average millennial, those born between 1982 and 2004, can only manage to save around £103 a month.
Equating to a paltry £1,236 a year, it means the current generation will be forced to toil until they are 77 before they save enough to finally retire.
Painting a bleak future for many young people, the giffgaff money poll also found nearly half – 49 per cent – cannot afford to pay into a pension scheme.
And of those who could contribute towards a retirement plan could only put away a dismal £40 per month on average.
Forbes 2017 Billionaires List Tue, March 21, 2017
Meet The Top 20 Richest People On The Planet
Getty Images 1 of 20
20. Sheldon Adelson, Chairman and CEO, Las Vegas Sands. Net worth: $30.4 B
Almost a third, 31 per cent, of the 1,179 asked had a workplace pension but were only able to contribute the minimum percentage of their wage, which is often determined by employees.
Giffgaff calculated the retirement age estimate was based on a 70 per cent retirement income expectation and using the UK average life expectancy of 82 years.
Richard Apletree, Managing Director at giffgaff money (Link), called the latest findings a “shame”.
The state pension age is currently 65 for men and increasing from 60 to 65 for women
He said: “It’s a shame to see the financial difficulties of younger workers not only affecting their ability save for the near future, but also forcing them to work long into their retirement years.
“While some younger people are able to make the minimum contributions to their workplace pension, greater investments often reap generous benefits.
Get Quotes on Home Insurance
“By hindering their ability to build a solid foundation, the long-term retirement goals of young people can suffer immediate setbacks.”
It’s a shame to see the financial difficulties of younger workers
Further studies appear to show spending power decreasing, adding to the woes of young people.
A recent report by think-tank The Resolution Foundation found a staggering 10 per cent pay gap between young people’s earnings today compared to 2009.
Those aged 65-74 reportedly hold more wealth than the entire under-45 population, they claimed.
The foundation said: “This generational concentration of wealth is being driven in no small part by the closure of access to generous defined-benefit occupational pension schemes to younger workers.”
The bleak findings are bolstered by a prediction from the Treasury which also admitted millennials may face toiling until they are 74.
Due to the spiralling cost of living, the Government body estimated the retirement age will rise by nearly a decade in the 2060s to cover an ageing population.
The current generation could be forced to toil until they are 77
The state pension age is currently 65 for men and increasing from 60 to 65 for women.
The Government plans to raise it to 66 for both sexes, and then to 67 in 2028 and 68 in 2046.
And Whitehall papers show civil servants envisage this rising to 69 in “the early 2050s”.
Almost a third, 31 per cent, of the 1,179 asked had a workplace pension
Lib Dem Sir Steve Webb, a pensions minister in the Coalition government, previously said: “Our society could be transformed in ways for which we are totally unprepared.
“A world where we cannot get a pension until we are 74 and a million people have celebrated their 100th birthday would need a total re-think of our approach to work, savings, health and care.”