Don’t Look Back in Anger: 49% of millennials admit they don’t have a retirement plan in place

● More than three in five (62%) millennials worry about the prospect of having to return to work once they retire, with almost half (49%) admitting they don’t have a retirement plan in place

● What’s more, 12% of those aged between 28 – 44 yrs old currently don’t have any money saved for when they retire while 36% don’t know what their monthly pension contributions are

● With the return of Oasis prompting discussion about the prospect of coming out of retirement, L&G is encouraging millennials to begin their accumulation journey early to avoid looking back in anger when the time comes to retire

Three in five (62%) of UK millennials worry about the prospect of having to return to work once they retire, with up to half (49%) admitting they don’t have a retirement plan in place according to new research1 from L&G.

What’s more, those aged between 28 – 44 yrs old are letting saving opportunities Slide Away – with 12% of those currently having no money saved for when they retire, while 36% don’t know what their monthly pension contributions are.

Three in five (62%) millennials worry about the prospect of returning to work once they retire, 58% say they know of friends and family who have had to do so, with a further 78% admitting they would feel frustrated if their future self didn’t have enough savings in place.

With the return of Oasis prompting further discussion about the prospect of coming out of retirement, Katharine Photiou, Managing Director of L&G’s Workplace Saving Business, shares her tips to help millennials avoid looking back in anger when their time comes:

1. Don’t underestimate the power of early starts – the earlier you start saving, the harder your money can work for you and the more help you’ll get from the government and your employer. While retirement might seem like a long way off, start saving early and you’ll reap the rewards!

2. Pay off your most expensive unsecured debt first – before you begin your saving journey, make sure you have a plan for paying off your existing unsecured debt first, starting with the most expensive which will help you save money on interest moving forwards.

3. Making the most of your savings – cash ISAs pay you interest on your savings, while Stocks & Shares ISAs aim to achieve better longer term growth.

4. Understand your workplace pension and boost contributions – most workers in the UK contribute 8% to their pension automatically through their salary (split between the employee and employer). While this is a good start, consider if you can afford to increase your contributions, even 1% could make a serious difference. Many employers will match increased contributions up to a certain level – which is essentially free cash, and something that can add a significant of money to your pot over time. And don’t forget the tax relief!

About L&G

Established in 1836, L&G is one of the UK’s leading financial services groups and a major global investor, with £1.1 trillion in total assets under management (as at FY24) of which c. 44% (c. £0.5 trillion) is international.

We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.

As at 12 March 2025, L&G has a market capitalisation of £14.1 billion.

About L&G Retail

L&G’s Retail business is a leading provider of retirement and protection solutions. We aim to support our c.12.8 million policyholders and workplace members throughout their financial lifetimes.

We focus on helping the customers of today and tomorrow achieve better long-term outcomes. We use the latest technology to connect with them quickly, efficiently and wherever possible in highly personalised ways.

In 2024, our workplace pension platform served 5.5 million members, with net flows of £6 billion. We achieved record total individual annuity sales of £2,118 million and £270 million of lifetime mortgage advances (including retirement interest only mortgages). Our UK protection businesses gave peace of mind to about 6.6 million people, with our retail gross premium income rising to £1,525 million and our group equivalent going up to £528 million.

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