Employers should encourage younger employees to obtain pension and savings advice, Equiniti has suggested.
According to a survey by Equiniti and YouGov, the youngest members of the UK workforce, and those studying at university are saving for their future but have no intention to make other investments or access advice.
Equiniti noted that despite worries over tuition fees and falling real wages, young millennials are still saving. The survey revealed that 12 per cent of 18-24 year olds contribute to either a personal or workplace pension and two fifth hold cash savings.
Nonetheless, Equiniti has expressed concerns that this group of people are not getting the advice they need to make sensible financial decisions, instead allocating their money to low yielding savings accounts.
When asked where they are most likely to seek advice on their savings and investments, 23 per cent of 18-24 year olds and 36 per cent of full-time students said they would consult family or friends. Only nine per cent said they would seek some form of professional guidance compared to over a fifth of people aged over 35. This may be due to the high fees that come with professional advice, Equiniti observed.
Equiniti CEO of EQ Boardroom Paul Matthews commented: “The last election has shown that the younger generations are as politically engaged as ever and this research shows that they are also taking responsibility for their finances. However, like all investors, they are finding reliable sources of information and guidance hard to come by. There is an opportunity here for employers to engage on a meaningful level with the future leaders of their businesses and help them make good financial decisions.”