Technology vital in engaging young savers

Written by Jack Gray

Around 90 per cent of people aged under 20 log in online to view their workplace pension, in comparison to 75 per cent of over 60s, new data from Hargreaves Lansdown has revealed.

The research highlights the gap between the younger and older generations when it comes to using technology to help them keep track of their pension funds.

Hargreaves Lansdown senior pension analyst, Nathan Long commented: “Simple steps like getting online access for your pensions, checking their values once a year and checking if you can pay in a little more will all help ensure you can plan for the future with confidence.”

It is hoped that making pension schemes more accessible through digital means will encourage younger savers to engage with their pension planning as the earlier savers increase their contributions, the more funds they will have for retirement.

Long continued: “More freedom means more responsibility and so taking time to boost your awareness of your retirement readiness is time well spent. Pensions get really interesting as you get older and the promise of a life without full-time work comes into view, but plenty of youngsters are getting in on the act too, proving it’s never too soon to start retirement planning.”

Hargreaves Lansdown’s research also found that, in comparison to under 30s, savers aged over 50 are 70 per cent more likely to hike the amount they pay into their pension scheme. They are also 64 per cent more likely to pick their own pension investments and three times as likely to nominate who should benefit if they die.

These figures suggest that there is still some way to go to get younger people more involved in their workplace pensions, but digital engagement could be the key to increase participation.

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