Pension panic looming among young people as first rewards-to-pension app launches

While younger generations are increasingly targeted by pension companies, the problem is that the world has changed, but pensions haven’t.

The pension industry has never fully aligned with the way that young, digitally savvy and mobile-first people live and manage their money. Gen Z and Millennials are increasingly disengaged from saving for later life, with only a fifth of 18-to 21-year-olds saving into pensions (according to Government research).

On Monday, 15 September we will be launching the first rewards-to-pension app called Chest, which aims to change how younger people (millennials and Gen Z – 18-44 yrs) engage with pensions by making saving as easy as buying a coffee. We will also announce brand new consumer research among a nationally representative sample of 2,200 UK consumers (commissioned by Chest and conducted by Censuswide) about pensions and attitudes to saving.

Who is Chest?

 
Chest is new. With a customer waitlist of 1,000+, it turns rewards from everyday spending – cashback, automated savings, roundups and other rewards from retailers and service providers like Amazon, Starbucks and Tesco – into money that’s deposited into their pension. This is saving, but not as we know it. Users will be able to check their pension score (and in the future compare it to their peers) as easily as accessing their credit score, adding additional cash to their pot whenever they want. Paying just £30 a month from reward and loyalty schemes into a pension could earn an extra £100,000 in retirement.
 

Research highlights:

• Living costs and other savings prioritised over retirement – Pressured by the high cost of living, Gen Z and millennials either cannot afford to save or are prioritising other short-term spending, such as holidays, homes and weddings.
• Pension panic – One in three under-45s admit to pension panic as rising costs push retirement plans to the back burner.
• Part of the daily routine – Nearly three-quarters of Gen Z and millennials already use or earn cashback from reward and loyalty schemes monthly or say they will switch to brands that offer good deals or incentives. This compares to 66% of Generation X and 70% of all respondents.
• Need for better information – Gen Z and millennials want to know how much they will need to live comfortably and need regular updates about whether they are on track for retirement. Nearly a third want more financial information and guidance on pensions (compared to 20% of all adults).
• Misplaced optimism – One in three Gen Z and millennials are confident about retirement savings and one in five believe their workplace pension is sufficient. Yet, 74% of the population won’t be able to afford their current lifestyle in retirement according to the Government’s Pensions Commission.

The post Pension panic looming among young people as first rewards-to-pension app launches appeared first on USNewsRank.