Nine stats that reveal young savers' low pension literacy

New research from Invesco suggests the level of pension literacy among younger savers is shockingly low

In an age in which older people typically are in receipt of generous defined benefit pensions that never required a great deal of decision-making in the accumulation phase, younger people could perhaps be forgiven for knowing very little about the mechanics of their own savings plans.

New research from Invesco suggests the level of pension literacy among younger savers is shockingly low, with some respondents thinking a pension is held entirely in cash that will accrue interest over time in the style of a bank account.

Invesco claims its study of 500 UK employees, and accompanying data from interviews with heads of pension schemes and focus groups is ‘the most extensive research ever conducted into the language of pensions.’ We will have to see about that, but suffice to say for the moment the picture is not great. Indeed, young people have a lot of learning to do. The figures below speak for themselves.

In an age in which older people typically are in receipt of generous defined benefit pensions that never required a great deal of decision-making in the accumulation phase, younger people could perhaps be forgiven for knowing very little about the mechanics of their own savings plans.

New research from Invesco suggests the level of pension literacy among younger savers is shockingly low, with some respondents thinking a pension is held entirely in cash that will accrue interest over time in the style of a bank account.

Invesco claims its study of 500 UK employees, and accompanying data from interviews with heads of pension schemes and focus groups is ‘the most extensive research ever conducted into the language of pensions.’ We will have to see about that, but suffice to say for the moment the picture is not great. Indeed, young people have a lot of learning to do. The figures below speak for themselves.

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

Source: Invesco

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