11 April 2017
36-page free report finds millennials saving more than you might think and favouring providers with mobile apps and platforms built with their needs in mind.
The retirement solutions specialist, Dunstan Thomas, today publishes a free 36-page report which summarises the results of a four-month study that it has carried out to find out more about what the UK’s 23-36-year-old ‘millennials’ are doing to save, invest and plan for the future. Dunstan Thomas worked with financial services specialist market research agency Opinium to gather the views of 1,000 millennials nationwide. The nationally representative group which completed the 26-question survey in December, provided a rich set of data which formed the basis of this report. The technology provider then tested the findings and went deeper by conducting 30 interviews to camera over a three-day period in the streets of Liverpool, London, and Bristol during January 2017.
Some of the key findings expounded on in the report are:
• A third of millennials are likely to take out a LISA
• 50% of 23-36 year olds had no awareness of the LISA or had ‘heard of it but did know what it was for’ prior to being questioned
• Saving for first home deposit is not top of the list of savings priorities, higher is building ‘a rainy-day savings fund’ cited by 38%. Second priority is saving for a holiday, for 29% of young savers. While saving for a deposit on their first home comes in third – rated by only a quarter (26%) of saving millennials. 16% are prioritising saving up for large household items and 12% are saving for a new car
• Average savings levels for full-time working 23-36-year-olds is £161.65, London’s millennials are top savers with £209 banked each month
• A third of 23-36 year olds are not in full-time work, we detected quite a few millennials working several different jobs on a freelance or short-term contract engagement or internship-basis
• Levels of financial responsibility and spirit of entrepreneurship amongst millennials we interviewed on the street was at once surprising and impressive
• There is an emerging early adopter millennial group which is avidly using mobile apps which help them manage their money and invest ‘on the fly’
• Reliance on the ‘Bank of Mum & Dad’ is also over-stated. Only in London, where average first home deposits exceed £100,000 today, do we find a more than 30% reliance for these deposits on external sources other than their own or their partner’s savings.
Adrian Boulding, Director of Retirement Strategy at Dunstan Thomas, explained: “Our Millennials Study shows that the next generation of savers don’t quite conform with the stereotypes that older generations have given them. They are generally more financially responsible, economically independent, and hardworking than some would have us believe.
“However, what the report also details is a picture of a generation that are digital natives. They expect to use mobile apps and portals to do their banking, saving, investing and even financial planning. Many of them expect to be provided with a mix of online tools to make all this financial activity as simple as possible. They are already rewarding providers that have ‘cracked digital’ with both loyalty and a larger share of their savings and investments.
Adrian Boulding continued: “It seems clear that ignoring this generation’s fairly advanced digital requirements and failing to engage with them online, is fast becoming business suicide in both the retirement and investment market as elsewhere.” You can download the 36-page report from Dunstan Thomas’ website by clicking on this link: http://www.dthomas.co.uk/content/fs/brochures.shtml
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