The kids may be alright











Are our kids turning into a generation of Saffies?(“the bitch-troll from hell” or “ever virtuous wonder kid” that haunts Patsy and Eddy through AbFab).

According to the excellent Scottish Widows Retirement Report 2014 they may be!

Their research found that 61% of those under 30 are now saving adequately for their retirement, higher than any older age group

The under 30s have historically been well behind older generations in the retirement saving race – until the last couple of years that is. With savings adequacy almost reaching the level of older groups (61% compared with 62% overall), average savings for the youngest workers are now 13% of their income – higher than any older age group .

This chimes with DWP research into auto – enrolment trends which highlights the high proportion of those youngsters not eligible to be auto-enrolled  but entitled to an employer contribution who are “opting-in” to the system.

Our own Josh Collins, boldly canvassing support for reports extraordinary interest in pensions among students starting small businesses (through NACUE) and young entrepreneur business accelerators.

And even the small sample of employees at First Actuarial suggests that our actuarial students are full on engaged with our workplace pension.

So what’s going on?

Well from the conversations I am having this is all about housing- more specifically the shift among youngsters from an assumption that housing equity is a universal panacea to cure all financial ills. Kids no longer expect to be housing rich by 30 (as we did in the 80s ,90s and noughties).

Are pensions the replacement security blanket?

Do read this report! It is valuable not just for what it says about 2014 but because – together with the previous reports which go back ten years, it provides longitudinal research into how our savings patterns are changing. And it’s good news! We are saving more!

  • 37% of people said they felt optimistic about long-term finances compared to 32% in 2013.
  • The proportion of women saving adequately increased dramatically from 40% to 50% in the past 12 months.
  • The amount people are saving towards retirement has increased from £54 per month in 2006 to £130 in 2014.

Auto-enrolment is the game-changer but so is the budget. Check out this extraordinary infographic which demonstrates just how savvy about retirement choices we are already becoming.


The message this year is optimistic. I am optimistic for the state of our nation’s pension savings.

And I’m scared by our kids.


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About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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