The generation game
Savings for the new millennial
Financial services providers such as life insurers, asset managers and banks are failing to connect with millennials (people born after 1980) at a time when young people need the industry more than ever. Increased longevity and reduced state and employer pension provision mean millennials will have to save more of their earnings than their parents, and do so over a longer period.
Yet, as the findings of new research from BNY Mellon and a team of undergraduates from Saïd Business School at the University of Oxford demonstrate, the techniques used by financial services providers to engage with baby boomers do not always work with millennials.
The study, entitled “The Generation Game: Savings for the New Millennial”, looks at the saving priorities, attitudes to retirement planning and expectations around different types of financial institutions of millennials across seven key markets—Australia, Brazil, China, Japan, the Netherlands, the United Kingdom and the United States.
This geographical spread allowed the researchers to engage with a broad range of millennial populations: emerged and emerging; large and small; those with a collective approach to pensions and those with a unitlinked system; and compulsory and voluntary pension systems. The members of the research team that produced this report are all aged between 19 and 21, so it is a study of millennials by millennials. More than 1,100 millennials were surveyed.
Performance issue 16 - January 2015
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.